Annual Report 2021 of China Fangda Group Co., Ltd.
China Fangda Group Co., Ltd.
2021 Annual Report
March 2022
1
Annual Report 2021 of China Fangda Group Co., Ltd.
Chapter I Important Statement, Table of Contents and Definitions
The members of the Board and the Company guarantee that the
announcement is free from any false information, misleading statement or
material omission and are jointly and severally liable for the information’s
truthfulness, accuracy and integrity.
Mr. Xiong Jianming, the Chairman of Board, Mr. Lin Kebin, the Chief
Financial Officer, and Mr. Wu Bohua, the manager of accounting department
declare: The Financial Report carried in this report is authentic and completed.
All the Directors have attended the meeting of the board meeting at which
this report was examined.
Forward-looking statements involved in this report including future plans
do not make any material promise to investors. Investors should pay attention to
investment risks.
The Company needs to comply with the disclosure requirements of the
decoration and decoration industry and the real estate industry in the Guidelines
for the Self-discipline and Supervision of Listed Companies of Shenzhen Stock
Exchange No. 3 - Industry Information Disclosure.
The company has described the existing market risks, management risks
and production and operation risks in this report. Please refer to the risks that
may be faced mentioned in10. Prospects for the Company's Future Development
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Annual Report 2021 of China Fangda Group Co., Ltd.
in ChapterIII Management Discussion and Analysis.
The Board meeting reviewed and approved the profit distribution preplan:
distributing cash dividend of RMB0.50 (tax included) for each ten shares to all
shareholders on the basis of 1,073,874,227 shares of the Company and no
dividend share is issued to shareholders. No reserve is capitalized. After the
announcement of the Company’s profit distribution plan to the time of
implementation, if the total share capital changes, in accordance with the
principle of “distributing cash dividends of RMB 0.50 (tax included) for every 10
shares”, the total share capital after the market closes on the equity registration
date when the profit distribution plan is implemented shall be used. The total
amount of cash dividends will be disclosed in the Company's profit distribution
implementation announcement.
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Annual Report 2021 of China Fangda Group Co., Ltd.
Contents
Chapter I Important Statement, Table of Contents and Definitions .........................................................................................................2
Chapter II About the Company and Financial Highlights ........................................................................................................................8
Chapter III Management Discussion and Analysis ................................................................................................................................14
Chapter IV Corporation Governance .....................................................................................................................................................46
Chapter V Environmental and social responsibility ...............................................................................................................................65
Chapter VI Significant Events ...............................................................................................................................................................68
Chapter VII Changes in Share Capital and Shareholders ......................................................................................................................80
Chapter VIII Preferred Shares ...............................................................................................................................................................87
Chapter IX Information about the Company’s Securities ......................................................................................................................88
Chapter X Financial Statements ............................................................................................................................................................89
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Annual Report 2021 of China Fangda Group Co., Ltd.
Reference
1. Financial statements stamped and signed by the legal representative, CFO and accounting manager;
2. Original copy of the Auditors’ Report under the seal of the CPA and signed by and under the seal of certified accountants;
3. Originals of all documents and manuscripts of Public Notices of the Company disclosed in public.
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Annual Report 2021 of China Fangda Group Co., Ltd.
Definitions
Refers
Terms Description
to
Refers
Fangda Group, company, the Company China Fangda Group Co., Ltd.
to
Refers
Articles of Association Articles of Association of China Fangda Group Co., Ltd.
to
Refers
Meeting of shareholders Meetings of shareholders of China Fangda Group Co., Ltd.
to
Refers
Board of Directors Board of Directors of China Fangda Group Co., Ltd.
to
Refers
Supervisory Committee Supervisory Committee of China Fangda Group Co., Ltd.
to
Refers
Banglin Technology Shenzhen Banglin Technologies Development Co., Ltd.
to
Refers Gong Qing Cheng Shi Li He Investment Management Partnership
Shilihe Co.
to Enterprise (limited partner)
Refers
Shengjiu Co. Shengjiu Investment Ltd.
to
Refers
Fangda Jianke Shenzhen Fangda Jianke Group Co., Ltd.
to
Refers The original name was Fangda Zhichuang Technology Co., Ltd., now it is
Fangda Zhichuang
to renamed Fangda Zhiyuan Technology Co., Ltd.
Refers
Fangda Jiangxi New Material Fangda New Materials (Jiangxi) Co., Ltd.
to
Refers
Fangda New Resource Shenzhen Fangda New Energy Co., Ltd.
to
Refers
Fangda Property Shenzhen Fangda Property Development Co., Ltd.
to
Refers
Fangda Chengdu Technology Chengda Fangda Construction Technology Co., Ltd.
to
Refers
Fangda Dongguan New Material Dongguan Fangda New Material Co., Ltd.
to
Kechuangyuan Software Refers Shenzhen Qianhai Kechuangyuan Software Co., Ltd.
6
Annual Report 2021 of China Fangda Group Co., Ltd.
to
Refers
Fangda Property Shenzhen Fangda Property Management Co., Ltd.
to
Refers
Fangda Jiangxi Property Fangda (Jiangxi) Property Development Co., Ltd.
to
Refers
Fangda Hongjun Investment Shenzhen Hongjun Investment Co., Ltd.
to
Refers
Fangda Investment Shenzhen Fangda Investment Partnership (Limited Partnership)
to
Refers
Fangda Lifu Investment Shenzhen Lifu Investment Co., Ltd
to
Refers
Fangda Xunfu Investment Shenzhen Xunfu Investment Co., Ltd
to
Refers The original name is Shenzhen Yunzhu Industrial Co., Ltd., now it is
Yunzhu
to renamed Shenzhen Fangda Yunzhu Technology Co., Ltd.
Refers
SZSE Shenzhen Stock Exchange
to
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Annual Report 2021 of China Fangda Group Co., Ltd.
Chapter II About the Company and Financial Highlights
1. Company profiles
Stock ID Fangda Group, Fangda B Stock code 000055, 200055
Modified stock ID (if any) None
Stock Exchange Shenzhen Stock Exchange
Chinese name China Fangda Group Co., Ltd.
Chinese abbreviation Fangda Group
English name (if any) CHINA FANGDA GROUP CO., LTD.
English abbreviation (if any) CFGC
Legal representative Xiong Jianming
Fangda Technology Building, Kejinan 12th Avenue, High-tech Zone, Hi-tech Park South Zone,
Registered address
Nanshan District, Shenzhen, PR China.
Zip code 518057
Changes in the Company's
None
registered address
Office address 39th Floor, Building T1, Fangda Town, No.2, Longzhu 4th Road, Nanshan District, Shenzhen
Zip code 518055
Website http://www.fangda.com
Email fd@fangda.com
2. Contacts and liaisons
Secretary of the Board Representative of Stock Affairs
PRINTED NAME Xiao Yangjian Guo Linchen
39th Floor, Building T1, Fangda Town, 39th Floor, Building T1, Fangda Town,
Address No.2, Longzhu 4th Road, Nanshan No.2, Longzhu 4th Road, Nanshan
District, Shenzhen District, Shenzhen
Telephone 86(755) 26788571 ext. 6622 86(755) 26788571 ext. 6622
Fax 86(755)26788353 86(755)26788353
Email zqb@fangda.com zqb@fangda.com
3. Information disclosure and inquiring
Website of the stock exchange where the company Shenzhen Stock Exchange http://www.szse.cn
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Annual Report 2021 of China Fangda Group Co., Ltd.
discloses its annual report
Names and websites of the media where the Company China Securities Journal, Security Times, Shanghai Securities Daily,
discloses its annual report Securities Daily, Hong Kong Commercial Daily and www.cninfo.com.cn
39th Floor, Building T1, Fangda Town, No.2, Longzhu 4th Road, Nanshan
Place for information inquiry
District, Shenzhen
4. Registration changes
Organization code None
Changes in main businesses since the
None
listing of the Company
Changes in the controlling shareholders (if
None
any)
5. Other information
Public accountants employed by the Company
Public accountants RSM Thornton (limited liability partnership)
901-22 to 901-26, Foreign Trade Building, No.22, Fuchengmenwai Street, Xicheng District,
Address
Beijing, China
Signing accountant names Xie Peiren, Zeng Hui, Hu Gaosheng
Sponsor engaged by the Company to perform continued supervision and guide during the reporting period
□ Applicable √ Inapplicable
Financial advisor engaged by the Company to perform continued supervision and guide during the reporting period
□ Applicable √ Inapplicable
6. Financial Highlight
Whether the Company needs to make retroactive adjustment or restatement of financial data of previous years
√ Yes □ No
Retroactive adjustment or restatement
Consolidation of entities under common control
Increase/decrea
2020 2019
se
2021
Before After After Before After
adjustment adjustment adjustment adjustment adjustment
3,557,724,397. 2,979,296,410. 3,000,191,773. 3,005,749,558. 3,025,276,905.
Turnover (yuan) 18.58%
54 16 63 66 82
Net profit attributable to
222,168,142.53 382,051,466.98 389,344,290.74 -42.94% 347,771,182.73 354,342,005.33
shareholders of the listed
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Annual Report 2021 of China Fangda Group Co., Ltd.
company (yuan)
Net profit attributable to the
shareholders of the listed
167,650,395.54 376,968,729.62 376,968,729.62 -55.53% 291,449,314.27 291,449,314.27
company and after deducting of
non-recurring gain/loss (yuan)
Net cash flow generated by
-63,425,296.29 548,709,785.90 554,967,948.96 -111.43% -5,284,830.77 -516,693.04
business operation (yuan)
Basic earnings per share
0.21 0.35 0.35 -40.00% 0.31 0.31
(yuan/share)
Diluted Earnings per share
0.21 0.35 0.35 -40.00% 0.31 0.31
(yuan/share)
Weighted average net
4.09% 7.26% 7.37% -3.28% 6.82% 6.93%
income/asset ratio
Increase/decrea
End of 2020 se from the end End of 2019
End of 2021 of last year
Before After After Before After
adjustment adjustment adjustment adjustment adjustment
12,261,338,518 11,866,857,250 11,891,623,391 11,369,964,580 11,395,464,044
Total asset (yuan) 3.11%
.66 .39 .03 .11 .45
Net profit attributable to the
5,524,039,886. 5,380,857,155. 5,392,694,939. 5,182,795,079. 5,203,037,880.
shareholders of the listed 2.44%
94 39 64 67 44
company (RMB)
Note: 1. The net profit attributable to the owners of the parent company this year decreased by 42.94% compared with the same
period of the previous year, mainly because: (1) The expected credit loss rate of accounts receivable and contract assets was
estimated according to the accounting standards in the previous year. The change resulted in an increase of RMB 93,672,500 in net
profit in the previous year; (2) the settlement of land value-added tax and settlement of construction contracts for the Shenzhen
Fangda Town project caused a net profit increase of RMB 107,382,800 in the previous year. After deducting the impacts, the net
profit attributable to shareholders of the listed company for the current year increased by 17.99% over the same period of the
previous year.
2. The net cash flow from operating activities in the current year decreased by 111.43% compared with the same period of last year,
mainly due to the decrease of cash flow from operating activities compared with the same period of last year due to the settlement
and payment of land value-added tax of RMB349,316,800 yuan in the reporting period of Shenzhen Fangda Town project of real
estate business.
The Company's net profit before and after non-recurring gains and losses was negative for the last three fiscal years, and the latest
audit report showed uncertainty about the Company's ability to continue operating
□ Yes √ No
Net profit before and after deducting non-re current gains and losses is negative
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Annual Report 2021 of China Fangda Group Co., Ltd.
□ Yes √ No
7. Differences in accounting data under domestic and foreign accounting standards
1. Differences in net profits and assets in financial statements disclosed according to the international and
Chinese account standards
□ Applicable √ Inapplicable
There is no difference in net profits and assets in financial statements disclosed according to the international and Chinese account
standards during the report period.
2. Differences in net profits and assets in financial statements disclosed according to the overseas and
Chinese account standards
□ Applicable √ Inapplicable
There is no difference in net profits and assets in financial statements disclosed according to the international and Chinese account
standards during the report period.
8. Financial highlights by quarters
In RMB
Q1 Q2 Q3 Q4
Turnover 646,737,766.14 922,041,068.84 871,353,200.73 1,117,592,361.83
Net profit attributable to the
75,170,490.26 36,318,211.07 65,539,582.16 45,139,859.04
shareholders of the listed company
Net profit attributable to the
shareholders of the listed company
58,982,525.69 38,113,269.26 57,157,352.87 13,397,247.72
and after deducting of
non-recurring gain/loss
Cash flow generated by business
-426,501,733.83 -74,422,811.17 9,031,184.97 428,468,063.74
operations, net
Where there is difference between the above-mentioned financial data or sum and related financial data in quarter report and interim
report disclosed by the Company
□ Yes √ No
9. Accidental gain/loss item and amount
√ Applicable □ Inapplicable
In RMB
Item 2021 2020 2019 Notes
Non-current asset disposal gain/loss
-2,291,048.05 -541,838.10 -101,676.86
(including the write-off part for which assets
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Annual Report 2021 of China Fangda Group Co., Ltd.
impairment provision is made)
Government subsidies accounted into
current gain/loss account, other than those
closely related to the Company’s common
12,459,417.63 12,872,885.30 5,411,736.29
business, comply with the national policy
and continues to enjoy at certain fixed rate
or amount.
Capital using expense charged to
non-financial enterprises and accounted into 585,760.51
the current income account
Net gain between the beginning and merger
day of subsidiaries generated by merger of 18,912.61 7,705,820.11 6,715,508.62
companies under common control
Gain/loss from change of fair value of
transactional financial asset and liabilities,
and investment gains from disposal of
transactional financial assets and liabilities 8,060,481.70 8,759,056.18 9,236,658.20
and sellable financial assets, other than valid
period value instruments related to the
Company’s common businesses
RMB 31,951,043.05
was reversed this year.
During the previous
period, the credit
status of the two
customers involved in
the receivables had
deteriorated
significantly. The
impairment test has
Write-back of impairment provision of been conducted
receivables for which impairment test is 31,951,043.05 100,023.62 separately and the
performed individually impairment provision
has been made
separately. As a result,
the company has
endeavored
relentlessly to ensure
that the case is
successful and the
bankruptcy of the
other party is applied
to obtain the priority
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Annual Report 2021 of China Fangda Group Co., Ltd.
of repayment of the
project funds, etc., and
finally recover the
aforementioned funds.
Gain/loss from commissioned loans 393,485.98 442,060.24
Gain/loss from change of fair value of
investment property measured at fair value 20,921,813.65 19,205,841.18 42,608,311.58
in follow-up measurement
Other non-business income and expenditures
-3,897,195.15 -34,752,456.16 -1,108,687.74
other than the above
Other gain/loss items satisfying the
-936,467.20
definition of non-recurring gain/loss account
Less: Influenced amount of income tax 12,358,051.51 778,490.70 164,700.18
Influenced amount of minority
347,626.94 488,742.67 -104,163.98
shareholders’ equity (after-tax)
Total 54,517,746.99 12,375,561.12 62,892,691.06 --
Other gain/loss items satisfying the definition of non-recurring gain/loss account:
□ Applicable √ Inapplicable
The Company has no other gain/loss items satisfying the definition of non-recurring gain/loss account
Circumstance that should be defined as recurrent profit and loss to Explanation Announcement of Information Disclosure No. 1 -
Non-recurring gain/loss
□ Applicable √ Inapplicable
The Company has no circumstance that should be defined as recurrent profit and loss to Explanation Announcement of Information
Disclosure No. 1 - Non-recurring gain/loss
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Annual Report 2021 of China Fangda Group Co., Ltd.
Chapter III Management Discussion and Analysis
1. Major businesses of the Company during the report period
Founded in 1991 in Shenzhen Special Economic Zone, the company is based in Nanshan District, Shenzhen. The Company's B
shares were listed on the Shenzhen Stock Exchange on November 29, 1995, and its A shares were listed on the Shenzhen Stock
Exchange on April 15, 1996.
2021 marks the 30th anniversary of the Company. In the past thirty years, the Company has remained committed to its core
business and adhered to its original mission of green, low-carbon and environmental protection, and has successively developed
products such as smart curtain walls, solar photovoltaic curtain walls, PVDF aluminum veneer, and rail transit screen doors. Since its
conception, the company has always adhered to the philosophy "technology-based, innovation-based", and has created Fangda's
craftsmanship in pursuit of outstanding quality. Our smart curtain wall system, PVDF aluminum veneer, rail transit screen door
system, and other products have become global industry benchmarks. In the period under review, the Company's "Urban Rail Transit
Platform Safety Door" product was identified as the single champion of manufacturing by the Ministry of Industry and Information
Technology of the People's Republic of China, and its subsidiary Shanghai Zhijian Technology Co., Ltd. was rated as a "specialized,
special, and new" enterprise in Songjiang District, Shanghai. Currently, the company has 7 national-level high-tech enterprises and
two provincial-level enterprise technology research centers. The Company has established an industrial layout with its headquarters
located in Shenzhen and its manufacturing bases in Dongguan, Foshan, Nanchang, Shanghai, and Chengdu and has established
branches in the "Belt and Road" regions including HKSAR, Singapore, India, Australia and Bangladesh. A new development strategy
pattern with domestic circulation as the main body and dual circulations within each country and region has been actively promoted.
In 2021, the domestic and foreign environment remained complex, with many uncertain and unstable factors. There is still a
high level of COVID-10 disease epidemics in the world, and domestic epidemics continue to occur widely and frequently. Bulk raw
material prices fluctuate greatly. The operations are extremely challenging. Through the joint efforts of all employees, the company
has completed its 2021 business goals primarily under the leadership of the Board of Directors and management team. An operating
income of 3,557,724,400 yuan was realized by the Company during the reporting period, which represents an increase of 18.58%
over the same period last year; the net profit attributable to the owners of the parent company was 222,168,100 yuan, which
represents a decrease of 42.94% over the same period last year. The main reasons for the decline were: (1) In the same period of the
previous year, the accounting estimates were changed in accordance with the accounting standards for the expected credit loss rate of
accounts receivable and contract assets, resulting in an increase of RMB 93.6725 million in net profit for the same period of the
previous year; (2) The Shenzhen Fangda Town project in the same period of the previous year underwent land value-added tax
liquidation and the settlement of the engineering contract caused an increase of RMB 107,382,800 in net profit in the same period of
the previous year. After deducting the impact, the net profit attributable to shareholders of the listed company for the reporting period
increased by 17.99% over the same period of the previous year. By the end of the reporting period, the company's order reserve
reached 6,988.2372 million yuan (excluding real estate pre-sale). This represents an increase of 41.86% over the same period in the
previous year, which was 1.96 times the operating income in 2021, laying the foundation for the Company's production and operation
in 2022.
(1) Smart curtain wall system and material
1. Industry development
This 14th Five-Year Plan and 2035 Vision Outline outlines the general direction of the future development of green, low-carbon,
prefabricated, information-based and new-type industrialization in the construction industry. As part of the "dual carbon" policy and
the energy structure adjustment, the curtain wall industry is facing the need to conserve energy and reduce emissions from the source.
As one of the main technologies of photovoltaic buildings, building-integrated photovoltaic (BIPV) curtain walls are becoming
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Annual Report 2021 of China Fangda Group Co., Ltd.
increasingly popular among the industry and receiving market attention. This is expected to bring about new opportunities in the
curtain wall industry. The Company began investing in building-integrated photovoltaic (BIPV) product research and development in
2002, and the product began going into use in 2003 after maturing technologically and accumulating experience.
In light of China's new infrastructure and urban construction, as well as the dividends brought by the
construction of the Guangdong-Hong Kong-Macao Greater Bay Area and the Shenzhen Demonstration Zone, the
construction of large-scale public buildings has been vigorously driven. The curtain wall market has also seen
a large increase in demand. The Company will continue to take advantage of the industry's regional leadership,
grasp the policy dividend, and follow the national development strategy to promote the Company's rapid
development.
2. Business
(1) Main products and purpose
Smart curtain walls are among the Company's major products and have been widely used in high-end office
buildings, corporate headquarters, urban complexes, high-end residences and hotels, urban public buildings, and
other applications. The Company has participated in the construction of Shenzhen International Convention and Exhibition
Center, Shenzhen Hanking Center, Shenzhen Tencent Digital Building, Beijing Yanqi Lake International Capital, Shanghai Bund
SOHO, Chengdu Tianfu International Conference Center, Nanjing Alibaba Jiangsu headquarters, Guangzhou International Financial
Forum (IFF) permanent venue, Wuhan Hubei Radio and Television Media Building, Angola Luanda Airport, Australia Victoria
Square and other landmark buildings smart curtain wall projects
(2) Main business modes, specific risks and changes;
During the reporting period, the Company's main business model did not change. The Company's smart curtain
wall design and construction contract orders are mainly obtained through the bidding mode (open bidding,
invitational bidding). Based on the orders, the Company provides the overall solution of design, raw material
procurement, production and processing, construction and installation and after-sales service. Due to the long
period of order implementation, it is greatly affected by national industrial policies, raw material prices,
and fluctuations in the labor market. Different orders have different technical requirements. It is impossible
to simply copy the existing experience, and the requirements for technology and management are relatively high.
(3) Market competition pattern in which the Company is located and the Company's market position
The domestic building curtain wall market is relatively competitive, and the market competition pattern has
changed in recent years. High-quality enterprises with stable cash flow, strong technological innovation ability,
high comprehensive management level and strong brand have been continuously developed and expanded, and the market
share of leading enterprises in the industry has continued to expand.
Shenzhen Fangda Jianke Co., Ltd., a wholly-owned subsidiary of the Company, has the highest qualifications
for curtain wall design and construction enterprises in China - the first-class qualification for professional
contracting of architectural curtain wall engineering and the first-class qualification for architectural curtain
wall engineering design. It is the leading enterprise in China's curtain wall industry. According to the "2020
Comprehensive Statistics of Building Decoration Industry (Curtain Wall)" compiled by the China Building Decoration Association,
Fangda Jianke ranked third. Since it was established 30 years ago, Fangda Jianke has won the highest awards in the national
construction industry, including "Luban Award", "National Quality Engineering Award", "Zhan Tianyou Civil Engineering Award",
"China Building Decoration Award", and over 200 provincial and ministerial awards. Fangda trademark was named a "China Famous
Trademark" and won "International Credit Brand". The Company has participated in drafting more than 20 national or industry
standards, including "Energy-saving Design Standards for Public Buildings", setting 18 Chinese enterprise records.
(4) Business drive
As of the end of the reporting period, the Company's curtain wall system and material industry realized an operating income of
RMB 2,584,704,000, an increase of 19.53% over the same period of the previous year; a net profit of RMB 64,339,000 and a gross
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Annual Report 2021 of China Fangda Group Co., Ltd.
profit margin of 14.49%. The key drivers of performance are as follows:
① By relying on the quality of the product, the technical strength, and the brand's influence, the market
has achieved remarkable growth
In 2021, the Company overcame multiple obstacles and relied on strong performance, technical strength, and brand influence to
achieve notable results in market development. During the reporting period, the Company's curtain wall system and material industry
won new bids and signed more than 50 high-end curtain wall projects with a total order value of RMB5.02 billion, an increase of
67.95% over the same period of the previous year, creating a record for the Company. A total of 15 projects have a contract value
exceeding RMB100 million, with the single order amount being large and the order quality being high. The smart curtain walls
projects that the company won and signed include Tianyin Building, Shenzhen Bay Super Headquarters, Shenzhen Kingdee Software
Park, Shenzhen Kangtai Group Building, Shenzhen Youbixuan Building, Wuhan Hubei Radio and Television Media Building,
Alibaba Jiangsu Headquarters, Foshan Shunde Rural Commercial Bank Headquarters, Shenzhen Qianhai Kerry Center, Shenzhen
Exhibition Bay Xingang Plaza, Xi'an Wanda ONE, Melbourne Domain House, and IGLU Russell Street. By the end of the reporting
period, the Company's order reserve of curtain wall system and materials industry was RMB5,402,710,100, an increase of 62.68%
over the same period of the previous year, which was 2.09 times the operating revenue of curtain wall system and materials industry
in 2021, laying a solid foundation for the sustainable and healthy development of the Company.
② Strengthen project plan management and improve execution efficiency
Over the reporting period, the Company continued to improve the contract-centered project planning management,
optimized the organizational structure, enhanced work guidelines for each link of the project execution process,
and further promoted refined micro-circulation management. The efficiency and quality of project execution were
continuously improved. During the period under reporting, more than 30 curtain wall projects around the world were successfully
completed and accepted, and the projects under construction all achieved "zero accident" safety, providing high-efficiency and
high-quality development services. As an example, the Shenzhen International Hotel project has created a miracle in the industry,
breaking new heights in production, construction and installation. The installation of 11,375 units was completed in 55 days, creating
a "new speed record". During the reporting period, eight high-end curtain wall projects undertaken by the Company won national
awards, among which Shenzhen Qianhai International Conference Center and Chengdu Fangda Chengda Center won the Luban
Award; Shenzhen Energy Building, Shenzhen Zhuoyuebaozhong Times Square, the second bid section of Xi'an Laian Center Phase 1
and the green energy and environmental protection project in Haining won the National Quality Engineering Award; Shenzhen
International Convention and Exhibition Center and Shenzhen Bay Innovation and Technology Center won the China Construction
Engineering Decoration Award, showing the Company's leading position and brand competitiveness in the industry.
③ With the smart factory as the core, promote a leap from "manufacturing" to "intelligent manufacturing".
The Company deeply focuses on high-quality development, and promotes intelligent and digital construction
in a variety of work links such as design, production, and construction, and takes the lead in building an
intelligent production line in the industry. BIM technology, self-developed project management systems, production
management systems, and other information management tools for curtain wall design and construction management as well as
application of advanced technologies such as robot intelligent welding and automatic glue, enabled by Internet technology track the
Company's products and continuously improve efficiency, ensure quality, and realize data-based management of the intelligent
manufacturing process.
④ Strengthen technological innovation and improve market competitiveness
As a leading enterprise in the curtain wall industry, the Company has adhered to the principle of "technology-based, innovation
as its source" and has been recognized as one of the first national high-tech enterprises in the same industry in China. In addition, the
Company has set up R&D institutions such as enterprise post-doctoral workstations, engineering technology centers, and curtain wall
research and design centers. During the reporting period, 14 patents were granted, including a modular frame curtain wall system, a
prefabricated ceiling curtain wall, and other patents. Using innovative technology has enhanced the efficiency of
production, construction and installation, and improved the project quality and safety. Furthermore, the Company's
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Annual Report 2021 of China Fangda Group Co., Ltd.
patent for the "unitized porcelain panel curtain wall" won the honorary certificate of the 19th Shenzhen Enterprise Innovation Record
and the Science and Technology Innovation Achievement Award of the Guangdong Architectural Decoration Industry. During the
reporting period, the Company has successively acquired 548 patents for curtain wall products, 19 software patents, and participated
in the compilation of 22 national technical specifications and standards. Its independent innovation capacity and technology have
reached the advanced level in the same industry in China, which has effectively promoted the technological progress and
development of the high-end curtain wall industry.
(5) Industry qualification types and validity period
The Company has a Class A qualification for building curtain wall engineering contracting and class A
qualification for building curtain wall engineering design. It is the highest level for curtain wall design and
construction companies in China. During the reporting period, the Company's relevant qualifications have not changed
significantly, and the validity period has not expired. The detail can be found in Chapter VI, XVI, and Other material events of this
report.
(6) Quality control system, implementation standards, control measures and overall evaluation
Quality control system: As a leading enterprise of high-end curtain wall, the Company pays attention to quality management. It
is the first in the industry to pass ISO9001, ISO14001, OHSAS18001 international and domestic dual certification, GB/T29490
intellectual property management system certification, and is the first to establish sales, design, supply, production, one-stop quality
control system such as construction, after-sales, customer service, etc., implement strict quality control and supervision for each link,
and create a strong quality management system.
Implementation of the standard: In the process of building curtain wall business, the Company strictly complies with
GB/T21086-2007 "Building Curtain Wall", JG/T231-2007 "Building Glass Lighting Roof" and other national and industrial
standards.
Control measures: The Company has established complete and effective quality control measures and quality management
organization, introduced digital information management, and digitally coded the company's businesses, various raw materials,
factory workshop and construction site operation procedures through computer information integration system, The eight systems
(CRM customer relationship management system, OA office system, HR human resources system, ERP financial management
system, MES production management system, PMS engineering management system, VPO supply management system and QAS
quality safety management system) realize the rapid transmission, sharing and collaborative application of information through cloud
terminal technology. Strictly implement various quality management and control measures to provide customers with
high-quality products and services.
Overall evaluation: The Company's quality control system and executive standards meet the relevant
requirements of the current relevant national norms and standards, maintain good operation, and provide customers
with stable and reliable products and services.
(7) Major project quality problem during the reporting period
None.
(2) Rail transport screen door business
1. Industry development
As an important part of high-end manufacturing equipment, rail transit equipment is closely related to the
national economic development, urban rail transit development and construction planning. In recent years, rail
transit has become more and more important in urban development. On March 5, 2021, the 14th Five Year Plan for National
Economic and Social Development of the People's Republic of China and the Outline of Long-Term Objectives for 2035 proposed to
"accelerate the construction of a transportation power". The Modern Comprehensive Transportation System in the 14th Five Year
Plan issued by the State Council clearly defined "building a metropolitan area on the track". The National Development and
Reform Commission has successively approved the establishment of the Guangdong-Hong Kong-Macao Greater Bay Area
(Intercity) Railway Construction Plan, the Yangtze River Delta Region Multi-level Rail Transit Plan, and the
17
Annual Report 2021 of China Fangda Group Co., Ltd.
Chengdu-Chongqing Economic Circle Multi-level Rail Transit Plan, among others. These plans apply to intercity
transportation and suburban (regional) railways within metropolitan areas. Focusing on the general goal of "building
urban agglomerations and metropolitan areas on track", the rail transit of urban agglomerations and metropolitan areas such as
Guangdong, Hong Kong, Macao, Yangtze River Delta, Beijing, Tianjin, Hebei and Chengdu Chongqing will usher in an important
period of inter city railway and municipal (suburban) railway construction. With the rapid development of cities, the
operation demand of urban rail transit in China will grow continuously in the future, which is conducive to the
sustainable development of rail transit related industries. While the mileage of rail transit lines continues
to grow, some rail transit PSD projects built in the early stage have also entered the maintenance period, and
the maintenance service business will also usher in sustained and stable development space in the future. It
is worth mentioning that rail transit safety doors may be widely used in high-speed rail platforms in the future,
and high-speed rail transit safety doors belong to the same category of products as the Company's existing metro
rail transit screen doors. Therefore, rail transit screen doors will open new application scenarios and open
a new broad market space.
2. Business
(1) Main products and purpose
The Company's main product is the rail transit platform screen door system, which is installed at the edge
of the platform of the urban rail transit station to isolate the train from the platform waiting room. The product
types include closed screen door, full height non closed screen door and half height screen door. It plays an
important role in the operation of rail transit and has the functions of safety, environmental protection and
energy saving.
(2) Main business model
The Company is a supplier and service provider of rail transit PSD system integrating R&D, design,
manufacturing, installation and commissioning and technical services, with a complete industrial chain. The
Company mainly obtains orders by participating in project bidding, carries out customized design, process
treatment, raw material procurement, production and installation of equipment system and provides technical
maintenance services on the basis of independent research and development according to the requirements of
different customers. The business model has not changed during the reporting period. Focusing on the whole life
cycle service of rail transit platform screen door system, the Company promotes the application of new technology
in the planning stage, provides high-quality products in the construction stage, improves customer operation
efficiency in the maintenance stage, and develops into an overall solution provider of rail transit platform
screen door system in the whole life cycle.
(3) Market competition pattern in which the Company is located and the Company's market position
The Company is a leader and promoter in the field of construction, operation and maintenance of PSD system
in urban rail transit. The Company's rail transit PSD system products have independent intellectual property
rights, and the total number of patents and software copyrights ranks in the forefront of the same industry.
The Company is the first enterprise in the same industry in China to pass the compliance certification of RAMS standard system. It
has presided over the preparation of the first domestic industry standard Platform Screen Door of Urban Rail Transit, which has
filled the gap in China. The Company has been forging ahead in the domestic and foreign markets with its technical advantages for
more than 20 years through continuous research and development. It has undertaken 104 subway platform door projects in 43 cities
around the world, and has become the largest rail transit platform screen door system supplier and service provider in the world.
During the reporting period, the Company's "urban rail transit platform safety door" was recognized as the single champion product
of the manufacturing industry by the Ministry of Industry and Information Technology, and the "intelligent rail transit platform door
system engineering technology research center" built by its subsidiary Fangda Zhiyuan technology was rated as the "Guangdong
Engineering Technology Research Center". The Company is a comprehensive leading enterprise in the field of technology,
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Annual Report 2021 of China Fangda Group Co., Ltd.
market and brand in the construction, operation and maintenance of PSD system of urban rail transit.
(4) Business drive
① High customer recognition and steady development of the Company
Through years of dedicated operation, the Company can independently provide customers with integrated
professional services of rail transit PSD system products integrating R&D, design, manufacturing, installation
and commissioning, technical services and maintenance. It has outstanding advantages such as safety, reliability,
availability and maintainability, has been highly recognized by customers and has accumulated extensive customer
resources. Qingdao Metro Line 2 and Xiamen Metro Line 1 have signed orders for the reconstruction of Xi'an Metro Line 4 and
Shenzhen Metro Line 8, and other urban shielding projects of Xi'an Metro Line 4 and Xiamen Metro Line 1. By the end of the
reporting period, the Company's rail transit PSD industry had achieved an operating revenue of RMB534,310,600 and an order
reserve of RMB1,585,527,100, which was 2.97 times of the operating revenue. During the reporting period, the Company has
been honored by many owners such as Hong Kong Railway Co., Ltd., Nanning Rail Transit Group and Wuhan Metro Group
Co., Ltd., which shows the high recognition and affirmation of the owner for the Company's high-quality performance
and first-class service.
② Continue to strengthen technological innovation and become a technology leader in the industry
In recent years, the Company has grasped the development trend of the rail transit industry at home and abroad,
actively adapted to the changes of the industry market, maintained the global leading position of the rail transit
platform screen door system business, insisted on putting the enhancement of independent innovation ability in
the primary position of the Company's development, and promoted the Company's development with independent
innovation. During the reporting period, the Company's "urban rail transit platform safety door" was recognized as the single
champion of the manufacturing industry by the Ministry of Industry and Information Technology of the People's Republic of China.
The company added 6 patents in the field of rail transit screen doors, completed 14 new product development and 5 software
copyrights. At the same time, the construction of 11 domestic rail transit PSD systems has been completed and successfully opened to
traffic. Among them, Shenzhen line 20, Wuhan line 5 and phase I of Nanning Metro Line 5 are driverless rail transit lines, equipped
with the PSD system with the highest automation level independently developed by the Company, which reflects the leading level of
intelligence and digitization of Fangda's PSD system and contributes to the construction level of smart city rail transit in China.
Breakthroughs have been made in the research and development of high-speed railway platform door system, with
mature technology and basically finalized products, laying a foundation for seizing market opportunities in the
future.
(3) New energy industry
In 2021, the state promulgated and implemented the major strategy of carbon peaking and carbon neutralization. The new
energy photovoltaic industry is an important industry for the implementation of the dual carbon strategy and a track with long-term
sustainable development. The Company has been practicing the concepts of low-carbon, energy saving, green and environmental
protection. It is an early developer and application of photovoltaic building integration (BIPV) and photovoltaic power generation
system design, manufacturing, integration and operation, and has mature technology. The Company has successively completed a
number of photovoltaic building integration (BIPV) projects such as Shenzhen Fangda building (roof), Nanjing Jiangsu bank
building (wall), Dongguan Songshan Lake base (roof), Jiangxi Isuzu car parking lot (roof) in Nanchang, and Jiangxi Pingxiang
distributed photovoltaic power station project. The above projects have been put into use.
As one of the key development industries of the company in the future, the new energy photovoltaic industry
is a new profit growth point planned by the Company. During the reporting period, in order to implement the national carbon
peak and carbon neutralization strategy and help rural revitalization, the Company signed the cooperation framework agreement on
Wan'an Fangda photovoltaic building integration (BIPV) and distributed photovoltaic power generation project with the People's
Government of Wan'an County, Jiangxi Province, and developed photovoltaic building integration (BIPV) and distributed
photovoltaic power generation projects within the agreed scope of Wan'an county.
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Annual Report 2021 of China Fangda Group Co., Ltd.
(4) Real Estate
1. Changes of macroeconomic situation and industrial policy environment related to the real estate industry; industrial
development status and policies of the city where the Company's main projects are located, and its impact on the future operating
performance and profitability of the listed company;
In 2021, with the intensive introduction of local real estate market regulation policies, China's real estate market has entered the
adjustment channel. At the same time, as a pillar industry, the steady and healthy development of real estate has
become the goal and consensus. According to the requirements of the notice of the National Development and Reform
Commission on promoting consumption in the near future at the beginning of 2022, support the commercial housing market to better
meet the reasonable housing needs of buyers, and implement policies to promote the virtuous circle and healthy development of the
real estate industry. Therefore, it is expected that in 2022, China's economy will face new challenges and pressures, but macro
policies will continue to make efforts to stabilize the economy. There are still expectations for the reduction of reserve requirements
and interest rates. Under the guidance of the general tone of "no housing speculation", it is expected that there is still room for
improvement in regulation and control policies.
The Company's real estate projects are in Shenzhen and Nanchang. Shenzhen's urban fundamentals are stable
and well oriented, and the construction of Guangdong, Hong Kong and Macao Bay area is further promoted. The strong
development trend will be concerned by more investors. In the long run, the first tier cities such as Shenzhen
are short of land resources, the population will continue to grow in the future, the real estate still has room
for appreciation, and there is regional differentiation.
Under the policy environment, Nanchang's real estate market is generally stable in 2021, but the transaction of commercial
housing market is low. In 2022, the supply and demand structure of the real estate market will be gradually reasonable. With the
gradual improvement of the credit environment, the transaction scale may increase.
Affected by the macro-economy and the regulation of the real estate industry, the sales volume and business
gross profit margin of the Company's real estate sector will be affected to a certain extent, but it is expected
to contribute profits to the Company.
2. The Company's main business model, business project format, market position and competitive advantage, main risks
and countermeasures
The Company's real estate business mainly adopts the business model of self-development, partial sales and
partial self-supporting. At present, the Company mainly develops, sells and rents office, commercial and apartment
products. The Company has established a professional team to operate and manage the Company's commercial and
property.
At present, the real estate projects operated by the Company are in Shenzhen and Nanchang.
Shenzhen is located in the core area of Guangdong, Hong Kong and Macao Great BayDistrict.The Company's Shenzhen
Fangda Town project has a rapid sales and leasing rate and has been highly recognized by the Shenzhen market.
At the end of the reporting period, the sales rate of Shenzhen Fangda Town project was 95.72%, and the leasing rate of self owned
properties was 86.08%. During the reporting period, the wholly-owned subsidiary of the Company was rated as "Development Power
Enterprise of Shenzhen Real Estate Development Industry". The Company's Fangda Center project is located in Honggutan,
Nanchang, with obvious location advantages. The introduced international famous brand hotel - Holiday Inn Express has officially
opened, and some government agencies in Honggutan District of Nanchang have settled in. The Nanchang Fangda Center project
has good market expectations, but due to the large inventory of commercial office buildings in Nanchang and the
downward trend in volume and price, the sales have slowed down. At the end of the reporting period, the sale
rate of Nanchang Fangda Center project was 28.79%, and the occupancy rate of self-owned properties was 77.12%.
The Company's real estate industry will still face risks such as national macro policy regulation, market
competition, and the impact of the new crown epidemic in the future. The Company will comply with policy changes,
continue to in-depth optimization in brand building, marketing and promotion, reduce operational and management
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Annual Report 2021 of China Fangda Group Co., Ltd.
risks, and maintain the Company's steady development.
3. New land reserve projects
Total land Equity
Parcel or Land area Building area Obtaining Interests price (ten consideration
Land location Purpose
project name (m2) (m2) method percentage thousand (ten thousand
yuan) yuan)
None
4. Total land reserve
Remaining building area
Project/region name Floor area (10,000 m2) Total building area (10,000 m2)
(10,000 m2)
None
5. Main production development status
Total Accumu
Area Estimat
Plannin area lated
complet ed total
Interests Develop Land g complet total
City/reg Project Land Project Starting Complet ed in investm
percenta ment area construc ed in investm
ion name location form time ion rate 2
this ent (in
ge progress (m ) tion area this ent (in
2
phase RMB10,
(m ) phase RMB10,
(m2) 2
000)
(m ) 000)
Shenzhe
No.2 Office
n May
Fangda Longzh commer 100.00 100.00 35,397. 212,400 217,763
Nansha th
1st, 100% 0 258,500 283,600
Town u4 cial % % 60 .00 .69
n 2014
Road complex
District
No.1516
Honggu
Ganjian Office
tan New
Fangda g North commer 100.00 1 May 100.00 16,608. 66,432. 65,376. 66,992.
District, 100% 0 67,000
Center Avenue cial % 2018 % 55 61 94 35
Nancha
Fangda complex
ng
Center
6. Main project sales
Amount
of Settleme
Pre-sale Settleme
Cumulati pre-sale Cumulati nt
(sales) nt area in
Interests ve (sales) in ve amount
City/regi Project Land Project Building Sellable area in the
percenta pre-sale the settleme in this
on name location form area area (m2) this current
ge (sales) current nt area period
period period
area (m2) period (m2) (RMB10
(m2) (m2)
(RMB10 ,000)
,000)
21
Annual Report 2021 of China Fangda Group Co., Ltd.
Shenzhe Office
No.2
n Fangda commerc 93,086.2 88,884.8 13,016.8 88,884.8 13,016.8
Longzhu 100.00% 212,400 2,504.89 2,504.89
Nanshan Town ial 5 2 22 2
4th Road
District complex
No.1516
Honggut
Ganjiang Office
an New
Fangda North commerc 65,376.9 26,883.9 4,253.80 10,107.0
District, 100.00% 7,554.39 3,168.63 7,554.39 7,554.39
Center Avenue ial 4 8 2
Nanchan
Fangda complex
g
Center
7. Main project lease
Interests Leasable area Cumulative Average lease
Project name Land location Project form 2 2
percentage (m ) leased area (m ) ratio
Office
Shenzhen Fangda Shenzhen
commercial 100.00% 72,517.71 59,345.24 81.84%
Town Nanshan District
complex
Shenzhen Fangda Shenzhen
Commercial shop 100.00% 22,775.52 22,682.85 99.59%
Town Nanshan District
Shenzhen
Fangda Building Office building 100.00% 17,432.38 14,517.06 83.28%
Nanshan District
Jiangxi Nanchang
Nanchang, Plant and office
Science and 100.00% 17,517.20 17,517.20 100.00%
Jiangxi Province building
Technology Park
Jiangxi Nanchang Nanchang, Commercial and
100.00% 37,876.98 29,211.33 77.12%
Fangda Center Jiangxi Province office building
8. First-level development of land
□ Applicable √ Inapplicable
9. Financing channel
Ending financing Financing cost Term structure (monetary unit: RMB10,000)
Financing source balance (in range / average
Within 1 year 1-2 years 2-3 years Over 3 years
RMB10,000) financing cost
During the same
period, the
benchmark interest
Bank loan 139,700.00 rate of the loan was 6,350.00 7,000.00 17,650.00 108,700.00
adjusted at the
agreed rate to
5.715%
Total 139,700.00 6,350.00 7,000.00 17,650.00 108,700.00
10. Development strategy and operation plan in next year
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Annual Report 2021 of China Fangda Group Co., Ltd.
Shenzhen's urban fundamentals are stable and well oriented, and the original driving force of the industry
is strong. At the same time, the concept of Guangdong Hong Kong Macao Bay Area has matured, and the integration
of Shenzhen and Hong Kong is continuing, which contains huge investment potential. In the future, the Company
will continue to expand the brand effect, deepen the local market, and effectively improve the Company's operating
performance.
The main task of the Company's real estate sector in 2022 is to realize the complete sale of Shenzhen Fangda Town project and
vigorously promote the sales of Nanchang Fangda Center project. At the same time, according to the latest policies, the
Company will integrate and optimize the existing resources of the Company and steadily promote the application
of Shenzhen Fuyong Fangda Bangshen project and Shenzhen Henggang Dakang urban renewal project.
11. Bank mortgage loan guarantee provided for commercial housing purchasers
√ Applicable □ Inapplicable
As of December 31, 2021, the balance of the Company's guarantee for commercial housing offenders due to bank mortgage
loans was RMB140,203,100.
12. Co-investment between Directors, supervisors and senior management and listed companies
□ Applicable √ Inapplicable
II. Core Competitiveness Analysis
(1) Smart curtain wall system and material
1. Advantages of technology and industry experience
Through 30 years of hard work in the field of high-end smart curtain wall and the development of environmental protection and
energy-saving curtain wall products through technological innovation, the Company has grasped the development trend of curtain
wall industry in the process of meeting market demand, improved the competitiveness of the Company's products, solutions and
services, and accumulated rich experience in project design and implementation and well-known cases.
As the leading enterprise in the curtain wall industry, the Company took the lead in setting up enterprise postdoctoral
workstation, engineering technology center, Curtain Wall Research and Design Institute and other R&D institutions in the same
industry in China, and was selected as the "top 500 innovation index of Chinese listed companies" for three consecutive years. It
has created many firsts in the industry and is one of the preferred brands in the domestic high-end curtain wall
system material industry. The six wholly-owned subsidiaries of the Company engaged in smart curtain wall system and material
industry are national high-tech enterprises. During the reporting period, the subsidiary was recognized as "Guangdong Intellectual
Property Demonstration Enterprise", "Shenzhen Intellectual Property Advantage Unit", "Jiangxi Enterprise Technology Center" and
"Nanchang Engineering Technology Research Center". 14 curtain wall patent applications were authorized. The Company's
independent innovation and continuous innovation have created the Company's leading technical level and manufacturing capacity.
2. Advantages of product service and refined management
With years of technical precipitation and experience accumulation, the Company's smart curtain wall system
and material industry has formed an overall solution integrating R&D, design, production, project management,
construction and maintenance services. The industry is complete and has strong comprehensive strength in terms
of quality, cost and service.
The Company has vigorously promoted intelligent construction and fine management in various business modules,
effectively improved the quality of products and services and enhanced the competitiveness of the Company. BIM
Technology, PMS project management platform, MES production management system and other information management tools are
applied to curtain wall design, manufacturing and construction management, combined with cloud computing, big data, mobile
application, Internet of things and other technologies to realize the rapid transmission and sharing of information, collaborative
application, open up various management modules, improve the efficiency of decision-making, speed up the response and execution
23
Annual Report 2021 of China Fangda Group Co., Ltd.
ability of business, and improve the fine management.
3. Brand competitiveness
Over the past 30 years since its establishment, the Company has been highly recognized by many industries and professionals
and has a good reputation by virtue of its advantages in products, technology and comprehensive services. The Company has won
"National Quality Award", "National Quality Engineering Award", Luban Award, Zhan Tianyou award, China Architectural
Decoration Award and more than 200 provincial and ministerial awards. Fangda trademark has been recognized as "China's
well-known trademark" and won the title of "international reputable brand". It has created thousands of landmark projects and has
become one of the leading brands in the field of curtain wall in China.
During the reporting period, the high-end curtain walls projects of Chongqing Raffles Plaza and Shenzhen Hanjing Center
undertaken by the Company were selected into the world's best High-rise Building Award (300-399 meters), and eight curtain wall
projects won national awards. The curtain wall industry and market usually have high requirements for the engineering
performance of enterprises participating in bidding, forming a certain threshold. Especially in the difficult
projects such as super high-rise buildings, large public buildings and special-shaped external maintenance
structures, the Company has rich industry experience and well-known case reputation, high brand reputation and
strong market competitiveness.
4. Industrial layout advantages
In order to better serve the market and meet the growing demand for orders, after years of accumulation and
continuous investment in facilities and equipment, the curtain wall system and material industry of the Company
has built a domestic industrial layout with Shenzhen as the headquarters and production bases in Shanghai, Chengdu,
Nanchang, Dongguan, Foshan and other places. Among them, Dongguan Songshanhu base is one of the most modern
high-end curtain wall system production bases in the industry, it has industry-leading R&D, design, manufacturing
and curtain wall system delivery capabilities. The Company's production base continues to increase digital and
intelligent construction, introduces intelligent equipment, and uses Internet technology to track the Company's
products and continuously improve efficiency. The layout of the production base provides an important guarantee
for improving the market share and comprehensive competitiveness.
5. Talent
The Company always adheres to the "people-oriented" talent concept, actively introduces and trains all kinds of professional
technology and management talents, and is committed to building an efficient management and operation team. After years of
development, the Company has an experienced senior management team and middle-level managers with strong execution
ability, as well as a complete talent training system and talent reserve. This year, we continuously optimized
the effective incentive and assessment system and implemented quantitative management. In order to meet the needs
of the Company's business development, the Company continued to introduce outstanding fresh graduates, build
an industry university research integration platform, promote school-enterprise cooperation and
industry-university combination mechanism, and ensure that the Company's scientific research strength in the
field of high-end curtain wall is at the leading level in the industry. Over the years, it has always paid attention to
the cultivation of "craftsman spirit". It has held "Fangda Craftsman" skill competition every year and "Fangda Lecture Hall" training
from time to time, continuously improved the theoretical knowledge and operation skill level of employees, created a skilled talent
team with reasonable structure, exquisite technology and excellent style, cultivated a number of "Shenzhen 100 excellent craftsmen",
and has been rated as "Shenzhen craftsman cultivation demonstration unit" for many times.
(2) Rail transport screen door business
1. Expertise competitiveness
The Company has always attached importance to technological innovation, took the lead in developing the rail
transit PSD system with independent intellectual property rights in China, broke the monopoly of foreign
enterprises in the field of China's rail transit PSD, and the product performance is at the international leading
24
Annual Report 2021 of China Fangda Group Co., Ltd.
level. China's first industry standard of platform screen doors for rail transit edited by the Company was implemented on March 1,
2007, filling the gap in this field in China and guiding the development of platform screen doors for rail transit in China. In
November 2021, the Company's "urban rail transit platform safety door" was recognized as the single champion product of
manufacturing industry by the Ministry of Industry and Information Technology.
2. market advantage
The Company is a pioneer and leader among China's rail transit platform screen door manufacturers. The Company's products
are used in 43 cities around the world, including the first subway line in 11 cities which has applied the company's products for the
platform screen doors. In China, Fangda's products have opened subway operation cities with a coverage rate of 70%. The company
actively develops one overseas market, and one belt, one road, and other countries and regions along the "Belt and Road" initiative in
Singapore, Malaysia, Thailand and India have obtained important project orders. Overseas projects have been implemented with rich
experience and a strong market brand awareness. The Company has become the largest manufacturer and service provider
of rail transit PSD system in the world.
The operation and maintenance of rail transit have high requirements for the safety and reliability of products
and equipment. The Company's leading technology, reliable product quality and efficient service have won a good
market reputation, maintained a stable cooperative relationship with customers and accumulated rich market
resources.
3. Industry chain advantage
As the first enterprise to enter the subway platform screen door in China, the Company has an overall solution
industrial chain of rail transit platform screen door integrating R&D, design, manufacturing, engineering
construction and technical services. The complete industrial chain helps the Company realize resource sharing
at all stages, so as to effectively reduce production and management costs, improve profitability, meet the market
demand for specialized products and services, and has a strong competitive advantage.
With many domestic metro platform screen door systems entering the maintenance period, the Company actively
expands the industrial chain and takes the lead in developing Metro maintenance business in China. The intelligent
maintenance management system developed by the Company can count and analyze the operation status of site equipment
in real time, remotely guide the on-site technical service team, and provide professional technical support to
customers in a timely and efficient manner.
(3) New energy industry
The Company's new energy industry mainly focuses on the development of new energy-saving technology applications such as
solar photovoltaic application and photovoltaic building integration (BIPV), and its business scope covers two major industries:
construction and photovoltaic power generation. The Company actively developed solar photovoltaic power generation curtain wall
system technology 20 years ago. It is one of the earliest enterprises in China that independently mastered and had independent
intellectual property rights to engage in the design, manufacturing and integration of solar photovoltaic building integration (BIPV)
system. The Company benefits from product R&D and cost advantages brought by industrial integration.
Distributed solar power PV power generation is closely related to the Company's curtain wall business. Part
of the distributed solar power PV systems are closely related to construction. Moreover, the Company has more
than 20 years' experience in electrical product integration. The Company also has more than 30 years' experience
in construction management and has the level-1 construction curtain wall engineering qualification and electrical
installation engineering qualification.
(4) Real Estate
1. The Company is located in the core area of Dawan District, Guangdong, Hong Kong and Macao. It adopts differentiated
competition strategy and focuses on the development of urban renewal projects in Shenzhen. Benefiting from the dividend of
Shenzhen's rapid economic development and the opportunity of further promotion of Shenzhen-Hong Kong integration,
it is expected that the company's real estate business will contribute profits to the Company in the future.
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Annual Report 2021 of China Fangda Group Co., Ltd.
2. Although the Company is a later comer in the industry, the Shenzhen Fangda Town project was quickly recognized by the
market and the sales rate was faster. During the reporting period, the wholly-owned subsidiary of the Company was rated as
"Development Power Enterprise of Shenzhen Real Estate Development Industry".
III. Core business analysis
1. Summary
See "I. Main Business Conditions of the Company During the Reporting Period" in Chapter III Management Discussion and
Analysis.
2. Income and costs
(1) Turnover composition
In RMB
2021 2020
Proportion in Proportion in YOY change (%)
Amount Amount
operating costs (%) operating costs (%)
Total turnover 3,557,724,397.54 100% 3,000,191,773.63 100% 18.58%
Industry
Metal production 2,584,704,014.98 72.65% 2,162,371,492.94 72.07% 19.53%
Railroad industry 534,310,567.88 15.02% 651,249,442.29 21.71% -17.96%
New energy industry 19,285,405.44 0.54% 19,978,873.86 0.67% -3.47%
Real estate 407,329,798.11 11.45% 151,222,473.25 5.04% 169.36%
Others 12,094,611.13 0.34% 15,369,491.29 0.51% -21.31%
Product
Curtain wall system
2,584,704,014.98 72.65% 2,162,371,492.94 72.07% 19.53%
and materials
Subway screen door
534,310,567.88 15.02% 651,249,442.29 21.71% -17.96%
and service
PV power generation
19,285,405.44 0.54% 19,978,873.86 0.67% -3.47%
products
Real estate sales 407,329,798.11 11.45% 151,222,473.25 5.04% 169.36%
Others 12,094,611.13 0.34% 15,369,491.29 0.51% -21.31%
District
In China 3,366,465,225.36 94.62% 2,846,753,096.09 94.89% 18.26%
Out of China 191,259,172.18 5.38% 153,438,677.54 5.11% 24.65%
Sub-sales mode
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Annual Report 2021 of China Fangda Group Co., Ltd.
Direct sales 3,557,724,397.54 100.00% 3,000,191,773.63 100.00% 18.58%
(2) Industry, product, region and sales mode accounting for more than 10% of the Company's operating
revenue or operating profit
√ Applicable □ Inapplicable
In RMB
Year-on-year Year-on-year Year-on-year
Turnover Operating cost Gross margin change in change in change in gross
operating revenue operating costs margin
Industry
Metal production 2,584,704,014.98 2,210,110,734.13 14.49% 19.53% 24.00% -3.08%
Real estate 407,329,798.11 158,976,059.02 60.97% 169.36% 38.46% 36.90%
Railroad industry 534,310,567.88 383,601,296.64 28.21% -17.96% -24.98% 6.73%
Product
Curtain wall
system and 2,584,704,014.98 2,210,110,734.13 14.49% 19.53% 24.00% -3.08%
materials
Real estate sales 407,329,798.11 158,976,059.02 60.97% 169.36% 38.46% 36.90%
Metro screen
534,310,567.88 383,601,296.64 28.21% -17.96% -24.98% 6.73%
door
District
In China 3,366,465,225.36 2,605,880,179.02 22.59% 18.26% 12.72% 3.80%
Sub-sales mode
Direct sales 3,557,724,397.54 2,761,300,557.48 22.39% 18.58% 14.27% 2.93%
Main business statistics adjusted in the recent one year with the statistics criteria adjusted in the report period
□ Applicable √ Inapplicable
The Company needs to comply with the disclosure requirements of the decoration and decoration industry in the Guidelines for the
Self-discipline and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.
In RMB
Year-on-year Year-on-year Year-on-year
Turnover Operating cost Gross margin change in change in change in gross
operating revenue operating costs margin
Industry
Metal production 2,584,704,014.98 2,210,110,734.13 14.49% 19.53% 24.00% -3.08%
Product
Curtain wall
2,584,704,014.98 2,210,110,734.13 14.49% 19.53% 24.00% -3.08%
system and
27
Annual Report 2021 of China Fangda Group Co., Ltd.
materials
District
In China 2,497,116,583.17 2,138,906,596.63 14.34% 21.43% 24.49% -2.10%
Main business statistics adjusted in the recent one year with the statistics criteria adjusted in the report period
□ Applicable √ Inapplicable
Different business types of the Company
In RMB
Business type Turnover Operating cost Gross margin
Curtain wall system and
2,584,704,014.98 2,210,110,734.13 14.49%
materials
Whether the Company runs business through the Internet
□ Yes √ No
Whether the Company runs overseas projects
√ Yes □ No
No. Location Number of Total amount of overseas project contracts
overseas projects (RMB10,000)
1 Australia 4 8,458.10
2 Middle East 1 820.87
Total 5 9,278.97
(3) The physical sales revenue is high the labor service revenue
□ Yes √ No
(4) Performance of major sales contracts and major purchase contracts signed by the Company as of the
reporting period
□ Applicable √ Inapplicable
(5) Operation cost composition
In RMB
2021 2020
Proportion in Proportion in
Industry Item YOY change (%)
Amount operating costs Amount operating costs
(%) (%)
Metal production Raw materials 1,390,170,739.40 62.90% 1,126,817,073.72 63.22% -0.32%
Installation and
Metal production 539,914,574.90 24.43% 449,443,748.31 25.22% -0.79%
engineering costs
Metal production Labor cost 146,644,527.60 6.64% 101,353,319.08 5.69% 0.95%
28
Annual Report 2021 of China Fangda Group Co., Ltd.
Railroad industry Raw materials 241,731,373.92 63.02% 318,518,796.97 62.29% 0.73%
Installation and
Railroad industry 73,430,526.18 19.14% 75,861,403.42 14.84% 4.30%
engineering costs
Railroad industry Labor cost 38,231,345.27 9.97% 32,435,591.19 6.34% 3.63%
Construction and
Real estate 49,779,295.03 31.31% 64,064,455.04 55.80% -24.49%
installation cost
Real estate Land cost 33,068,762.42 20.80% 2,998,466.20 2.61% 18.19%
Real estate Loan interest 3,704,260.45 2.33% 33,180.45 0.03% 2.30%
Real estate Labor cost 16,716,890.93 10.52% 12,855,369.02 11.20% -0.68%
Notes:
In addition to the above costs, other costs are mainly energy costs such as water, electricity and rent.
Main business cost
In RMB
2021 2020
Proportion in Proportion in
Cost composition Business type YOY change (%)
Amount operating costs Amount operating costs
(%) (%)
Curtain wall
Raw materials system and 1,390,170,739.40 62.90% 1,126,817,073.72 63.22% -0.32%
materials
Curtain wall
Installation and
system and 539,914,574.90 24.43% 449,443,748.31 25.22% -0.79%
engineering costs
materials
Curtain wall
Labor cost system and 146,644,527.60 6.64% 101,353,319.08 5.69% 0.95%
materials
(6) Change to the consolidation scope in the report period
√ Yes □ No
There are 6 newly added companies within the scope of merger of the Company in this period, including 4 newly added companies in
the way of establishment: Fangda Zhichuang Technology Singapore Company, Fangda Zhichuang Technology Wuhan Company,
Fangda Zhichuang Technology Nanchang Company and Fangda Zhichuang Technology Dongguan Company; two new companies
were added to the business merger under the same control: Shenzhen Yunzhu Industrial Co., Ltd. and Shenzhen Yunzhu Testing
Technology Co., Ltd.
(7) Major changes or adjustment of business, products or services in the report period
□ Applicable √ Inapplicable
29
Annual Report 2021 of China Fangda Group Co., Ltd.
(8) Major sales customers and suppliers
Main customers
Total sales amount to top 5 customers (RMB) 557,764,662.58
Proportion of sales to top 5 customers in the annual sales 15.68%
Percentage of sales of related parties in top 5 customers in
0.00%
the annual sales
Information of the Company's top 5 customers
No. Customer Sales (RMB) Percentage in the annual sales
China Construction Science and Engineering
1 142,565,566.39 4.01%
Group Shenzhen Co., Ltd.
2 2nd customer 123,377,513.25 3.47%
3 3rd customer 108,893,185.38 3.06%
4 4th customer 93,486,406.76 2.63%
5 5th customer 89,441,990.80 2.51%
Total -- 557,764,662.58 15.68%
Other information about major customers
□ Applicable √ Inapplicable
Main suppliers
Purchase amount of top 5 suppliers (RMB) 485,046,033.85
Proportion of purchase amount of top 5 suppliers in the total
17.50%
annual purchase amount
Percentage of purchasing amount of related parties in top 5
0.00%
customers in the annual purchasing amount
Information of the Company’s top 5 suppliers
No. Supplier Purchase amount (RMB) Percentage in the annual purchase
amount
1 1st supplier 120,812,211.95 4.36%
2 2nd supplier 118,681,902.98 4.28%
3 3rd supplier 97,421,958.29 3.52%
4 4th supplier 73,303,733.49 2.65%
5 5th supplier 74,826,227.14 2.70%
Total -- 485,046,033.85 17.50%
Other information about major suppliers
□ Applicable √ Inapplicable
30
Annual Report 2021 of China Fangda Group Co., Ltd.
3. Expenses
In RMB
2021 2020 YOY change (%) Notes
It is mainly due to the increase of labor
costs, sales agency fees of real estate
business and the reclassification of
Sales expense 59,877,614.73 39,801,205.56 50.44%
quality assurance expenses from
management expenses to sales
expenses this year
Administrative expense 169,443,658.83 143,365,324.03 18.19%
Financial expenses 103,001,595.93 87,013,083.43 18.37%
R&D cost 152,973,582.38 143,592,870.45 6.53%
It is mainly because the Company's real
estate industry Shenzhen Fangda Town
project carried out land value-added
Taxes and surcharges 72,326,973.99 -222,120,890.04 132.56%
tax liquidation in 2020, and the original
land value-added tax withdrawn was
reversed in 2020.
4. R&D investment
√ Applicable □ Inapplicable
Expected impact on the future
R&D project name Purpose Progress Objective
development of the Company
Improve product
In line with the national
Research and quality, improve
policy guidance, it has
development of installation Improve the development
good market prospects and
new efficiency, improve level of assembly and
In development can adapt to the
industrialized construction safety maintain the leading
development trend of
curtain wall and reduce energy position in the industry.
building curtain wall in
system consumption in the
the future.
construction process.
Achieve the design
Research and Reduce energy concept of energy-saving,
Improve the intelligent
development of consumption and emission reduction and
level of the system and
intelligent improve the In development green buildings, and
meet the needs of market
curtain wall performance of improve the market
development.
system intelligent products. competitiveness of
products
Research and Improve production In the process of Improve production Improve the production
31
Annual Report 2021 of China Fangda Group Co., Ltd.
development of efficiency and adapt R&D promotion, the capacity, output and support capacity and
smart factory to customized intelligent product quality, and improve the automation
flexible production. construction of reduce production costs. and intelligence level of
production some production production equipment.
system lines has been
completed
Further enhance the
Enhance product
Research and independent R&D
safety, reliability
development of Optimize product system capability and improve
and availability to
new generation In development performance and maintain the market
meet the advanced
rail transit PSD industry leadership. competitiveness of the
requirements of the
control system Company in the field of
core system.
PSD.
Research and Research and Expand the application
Optimize the product
development of development of new scenarios of the
structure to meet the
new generation products to improve In development Company's products and
needs of market
full height market enhance the leading edge
development.
platform door competitiveness. of industry technology.
Develop products that
Diversify product
Study on nano conform to the concept of
Research and categories and respond to
composite green and environmentally
development of new national energy
thermal In development friendly buildings, save
products to meet conservation and
insulation energy and reduce
market demand. environmental protection
aluminum veneer emissions, and enhance
policies.
competitiveness.
R&D personnel
2021 2020 Change
R&D staff number 563 565 -0.35%
R&D staff percentage 19.03% 25.17% -6.14%
Academic structure of R&D
—— —— ——
personnel
Bachelor 324 283 14.49%
Master’s degree 7 6 16.67%
Age composition of R&D
—— —— ——
personnel
Under 30 235 254 -7.48%
30-40 221 199 11.06%
R&D investment
2021 2020 Change
32
Annual Report 2021 of China Fangda Group Co., Ltd.
R&D investment amount
152,973,582.38 143,592,870.45 6.53%
(RMB)
Investment percentage in
4.30% 4.79% -0.49%
operation turnover
Capitalization of R&D
0.00 0.00
investment amount (RMB)
Percentage of capitalization of
R&D investment in the R&D 0.00% 0.00%
investment
Reasons and effects of major changes in the composition of R&D personnel of the Company
□ Applicable √ Inapplicable
Reason for the increase in the percentage of R&D investment in the business turnover
□ Applicable √ Inapplicable
Explanation of the increase in the capitalization of R&D investment
□ Applicable √ Inapplicable
5. Cash flow
In RMB
Item 2021 2020 YOY change (%)
Sub-total of cash inflow from
3,615,387,540.90 3,578,489,341.41 1.03%
business operations
Sub-total of cash outflow from
3,678,812,837.19 3,023,521,392.45 21.67%
business operations
Cash flow generated by
-63,425,296.29 554,967,948.96 -111.43%
business operations, net
Sub-total of cash inflow
2,578,992,220.76 9,159,184,240.33 -71.84%
generated from investment
Subtotal of cash outflows 2,695,492,878.10 9,032,785,558.83 -70.16%
Cash flow generated by
-116,500,657.34 126,398,681.50 -192.17%
investment activities, net
Subtotal of cash inflow from
2,360,667,296.03 2,748,060,091.27 -14.10%
financing activities
Subtotal of cash outflow from
2,311,447,620.31 3,130,218,820.25 -26.16%
financing activities
Net cash flow generated by
49,219,675.72 -382,158,728.98 112.88%
financing activities
Net increase in cash and cash
-136,135,458.15 297,453,047.55 -145.77%
equivalents
33
Annual Report 2021 of China Fangda Group Co., Ltd.
Explanation of major changes in related data from the same period last year
√ Applicable □ Inapplicable
The net cash flow from operating activities in the reporting period of the Company decreased by 111.43% compared with last year,
mainly due to the settlement and payment of land value-added tax of RMB349,316,800 in the reporting period of Shenzhen Fangda
Town project of real estate business; The net cash flow from investment activities decreased by 192.17% compared with last year,
mainly due to the net cash inflow from the recovery of the balance of early financial investment in 2020 and the basic balance of net
investment revenue and expenditure in 2021; The net cash flow from financing activities increased by 112.88% compared with last
year, mainly due to the increase of net bank loan income and expenditure in the current period, as well as the receipt of some equity
funds from the transferor Dazhi Chuang company and the payment for business merger under the same control; The net increase in
cash and cash equivalents decreased by 145.77% compared with last year, mainly due to the comprehensive impact of the changes in
the net cash flow of the above-mentioned operating activities, investment activities and financing activities.
Explanation of major difference between the cash flow generated by operating activities and the net profit in the year
√ Applicable □ Inapplicable
The difference between the net cash flow from the Company's operating activities during the reporting period and the net profit of
this year is mainly due to the land value-added tax of RMB349,316,800 paid by the real estate industry Shenzhen Fangda Town
project during the reporting period.
IV. Non-core business analysis
√ Applicable □ Inapplicable
In RMB
Amount Profit percentage Reason Whether continuous
Investment income -1,459,334.05 -0.54% No
Gain/loss caused by Mainly due to adjustment of
changes in fair 23,422,035.73 8.74% fair value of investment real No
value estate
It is mainly the provision for
Assets impairment 7,181,339.41 2.68% impairment of contract No
assets reversed
Non-operating
2,209,180.56 0.82% No
revenue
Non-business
6,087,375.71 2.27% Mainly due to donations No
expenses
Mainly bad debt provision
Credit impairment
-7,923,995.43 -2.96% corresponding to accounts No
loss
receivable
34
Annual Report 2021 of China Fangda Group Co., Ltd.
V. Assets and Liabilities
1. Major changes in assets composition
In RMB
End of 2021 Beginning of 2021
Proportion in Proportion in Change (% ) Notes
Amount Amount
total assets total assets
Monetary capital 1,287,563,759.32 10.50% 1,463,974,162.45 12.30% -1.80%
Account
556,453,824.20 4.54% 616,960,252.54 5.19% -0.65%
receivable
Contract assets 1,782,947,673.13 14.54% 1,433,963,300.50 12.05% 2.49%
Inventory 733,280,924.98 5.98% 837,831,790.88 7.04% -1.06%
Investment real
5,765,352,393.13 47.02% 5,634,648,416.52 47.36% -0.34%
estate
Long-term share
55,218,946.14 0.45% 55,902,377.95 0.47% -0.02%
equity investment
Fixed assets 663,414,297.61 5.41% 483,217,323.75 4.06% 1.35%
Construction in
11,642,444.21 0.09% 168,626,803.01 1.42% -1.33%
process
Use right assets 31,440,856.54 0.26% 5,844,154.69 0.05% 0.21%
Short-term loans 1,287,474,398.65 10.50% 1,048,250,327.62 8.81% 1.69%
Contract
180,186,877.15 1.47% 265,487,113.12 2.23% -0.76%
liabilities
Long-term loans 1,333,500,000.00 10.88% 1,099,411,462.35 9.24% 1.64%
Lease liabilities 19,152,093.31 0.16% 5,844,154.69 0.05% 0.11%
Non-current
liabilities due in 1 78,418,557.76 0.64% 103,359,833.57 0.87% -0.23%
year
The proportion of overseas assets is relatively high
□ Applicable √ Inapplicable
2. Assets and liabilities measured at fair value
√ Applicable □ Inapplicable
In RMB
Item Opening Gain/loss Accumulative Impairme Amount Amou Other Closing
amount caused by changes in fair nt purchased in nt change amount
changes in value provided the period sold
35
Annual Report 2021 of China Fangda Group Co., Ltd.
fair value accounting in the in the
into the period period
income
account
Financial
assets
1. 14,382,896. 25,135,24
Transaction 04 1.89
al financial
assets
(excluding
derivative
financial
assets)
2. 6,974,448.2 1,069,587
Derivative 2 .62
financial
assets
3. 17,628,307. -3,447,654.9 -18,161,200.5 14,180,65
Investment 59 4 4 2.65
in other
equity tools
4. 10,727,129. 4,263,500
Receivable 28 .00
financing
5. Other 5,025,186.1 2,500,222.08 7,525,408
non-current 6 .24
financial
assets
Subtotal 54,737,967. -947,432.86 -18,161,200.5 0.00 0.00 0.00 0.00 52,174,39
29 4 0.40
Investment 5,628,291,4 20,921,813.6 67,142,127.21 2,805,641.38 103,197,6 5,755,216
real estate 48.40 5 76.67 ,580.10
Total 5,683,029,4 19,974,380.7 2,805,641.38 103,197,6 5,807,390
15.69 9 48,980,926.67 76.67 ,970.50
Financial 915,234.93 11,871.20
liabilities
Other change
Other changes are mainly due to the change of some inventories for sale of Nanchang Fangda center project to
external rental, which is measured at fair value, and the inventory measured at cost is changed to investment
36
Annual Report 2021 of China Fangda Group Co., Ltd.
real estate measured at fair value.
Major changes in the assets measurement property of the Company in the report period
□ Yes √ No
3. Right restriction of assets at the end of the period
Item Book value on Friday, December 31, Reason
2021 (RMB)
Monetary capital 395,312,687.73 Various deposits
Notes receivable 25,964,425.17 Bills endorsed or discounted but not yet due
Account receivable 45,503,561.84 Loan by pledge
Fixed assets 115,695,967.29 Loan by pledge
Investment real estate 3,633,265,958.13 Loan by pledge
Other non-current 306,738,886.82 Loan by pledge
assets
Equity pledge 200,000,000.00 100% stake in Fangda Property Development
held by the Company
Total 4,722,481,486.98
VI. Investment
1. General situation
√ Applicable □ Inapplicable
Investment (yuan) in the report period Investment (yuan) in the previous period Change
125,388,100.00 0.00
2. Major equity investment in the report period
√ Applicable □ Inapplicable
In RMB
Progres Current Whethe
Investe Method Shareh s as of investm r Disclos
Main Investm Term of Disclos
d of olding Capital Type of the Estimat ent litigatio ure
busines ent Partner investm ure date
compan investm percent source product balance e return profit n is source
s amount ent (if any)
y ent age sheet and involve (if any)
date loss d
Shenzh Technic Buildin 100% Tuesda Announ
en al 125,38 Self-ow g equity y, cement
Acquisi 100.00 Inappli Long-te 7,901,3
Yunzhu services 8,100.0 ned inspecti has No March on
tion % cable rm 28.01
Industri , 0 fund on and been 23, Acquisi
al Co., inspecti technic transfer 2021 tion of
37
Annual Report 2021 of China Fangda Group Co., Ltd.
Ltd. on, al red and Equity
mainten services control and
ance has Related
and been Party
functio transfer Transac
n red to tions by
transfor the Wholly
mation Compa Owned
services ny Subsidi
of aries on
existing Http//w
buildin ww.cni
g nfo.co
external m
mainten (http://
ance www.c
system, ninfo.c
as well om.cn/)
as
buildin
g
waterpr
oof,
anti-cor
rosion
and
thermal
insulati
on
busines
s.
125,38
7,901,3
Total -- -- 8,100.0 -- -- -- -- -- -- -- -- --
28.01
0
3. Major non-equity investment in the report period
□ Applicable √ Inapplicable
4. Financial assets investment
(1) Securities investment
□ Applicable √ Inapplicable
38
Annual Report 2021 of China Fangda Group Co., Ltd.
The Company made no investment in securities in the report period
(2) Derivative investment
√ Applicable □ Inapplicable
In RMB10,000
Proporti
on of
closing
investm Actua
Derivati
Impairm ent l
ve Initial Amount Closing
Related Amount ent amount gain/l
investm Relation Initial Start investm sold in investm
transacti Type End date in this provisio in the oss in
ent ship amount date ent this ent
on period n (if closing the
operator amount period amount
any) net report
name
assets in period
the
report
period
Shangha Friday,
Shanghai Friday,
i Futures Decemb 2,043.
No No aluminu 8,112.09 April 8,112.09 500.55 8,112.09 0 500.55 0.09%
Exchang er 31, 02
m 17, 2020
e 2021
Wednes Friday,
Forward
day, Decemb 207.2
Banks No No foreign 5,803.03 5,803.03 1,851.9 6,200.71 0 1,454.22 0.26%
July 29, er 31, 7
exchange
2020 2021
13,915.1 13,915.1 2,250.
Total -- -- 2,352.45 14,312.8 0 1,954.77 0.35%
2 2 29
Capital source Self-owned fund
Lawsuit (if any) None
Disclosure date of derivative
investment approval by the Board of Saturday, October 30, 2021
Directors
Disclosure date of derivative
investment approval by the Inapplicable
shareholders’ meeting
The Company's aluminum futures hedging and foreign exchange derivatives trading
Risk analysis and control measures
business are all derivatives investment business. The Company has established and
for the derivative holding in the report
implemented the "Derivatives Investment Business Management Measures" and
period (including without limitation
"Commodity Futures Hedging Business Internal Control and Risk Management System". It
market, liquidity, credit, operation and
has made clear regulations on the approval authority, business management, risk
39
Annual Report 2021 of China Fangda Group Co., Ltd.
legal risks) management, information disclosure and file management of derivatives trading business,
which can effectively control the risk of the Company's derivatives holding positions.
Changes in the market price or fair
value of the derivative in the report
period, the analysis of the derivative’s
Fair value of derivatives are measured at open prices in the open market
fair value should disclose the method
used and related assumptions and
parameters.
Material changes in the accounting
policies and rules related to the
None
derivative in the report period
compared to last period
Opinions of independent directors on
the Company’s derivative investment None
and risk controlling
5. Use of raised capital
□ Applicable √ Inapplicable
The Company used no raised capital in the report period.
VII. Major assets and equity sales
1. Major assets sales
□ Applicable √ Inapplicable
The Company sold no assets in the report period.
2. Major equity sales
□ Applicable √ Inapplicable
VIII. Analysis of major joint stock companies
√ Applicable □ Inapplicable
Major subsidiaries and joint stock companies affecting more than 10% of the Company’s net profit
In RMB
Main Registered Operation
Company Type Total assets Net assets Turnover Net profit
business capital profit
Fangda 200,000,000. 5,923,715,03 2,483,697,42 234,263,889. 36,782,934.3 26,324,703.9
Subsidiaries Real estate
Property 00 1.83 3.98 22 0 6
Fangda Subsidiaries Curtain wall 500,000,000. 3,935,886,86 1,220,709,35 2,276,548,34 141,026,573. 127,913,366.
40
Annual Report 2021 of China Fangda Group Co., Ltd.
Jianke system and 00 9.87 7.74 8.13 90 34
materials
Subway
Fangda 105,000,000. 809,238,393. 258,063,936. 533,910,384. 85,511,234.2 83,616,668.6
Subsidiaries screen door
Zhichuang 00 41 24 84 2 2
and service
Subway
Kechuangyua 64,555,347.8 47,710,965.7 47,635,181.3 45,142,603.9 38,815,162.6
Subsidiaries screen door 5,000,000.00
n Software 4 6 8 0 9
and service
Jiangxi
100,000,000. 644,743,678. 195,677,861. 92,987,001.2 35,372,969.8 24,033,884.9
Property Subsidiaries Real estate
00 97 24 0 0 2
Development
Acquisition and disposal of subsidiaries in the report period
√ Applicable □ Inapplicable
Acquisition and disposal of subsidiaries in Impacts on overall production, operation
Company
the report period and performance
Fangda Zhichuang Technology (Singapore)
Newly set None
Co., Ltd.
Fangda Zhichuang Technology (Wuhan)
Newly set None
Co., Ltd.
Fangda Zhichuang Technology (Nanchang)
Newly set None
Co., Ltd.
Fangda Zhichuang Technology
Newly set None
(Dongguan) Co., Ltd.
Consolidation of entities under common
Shenzhen Yunzhu Industrial Co., Ltd. None
control
Shenzhen Yunzhu Testing Technology Co., Consolidation of entities under common
None
Ltd. control
Major joint-stock companies
None
IX. Structural entities controlled by the Company
□ Applicable √ Inapplicable
X. Future Prospect
(1) Competition map and development trend
1. Smart curtain wall and material system industry
In the context of carbon peak and carbon neutralization, China is accelerating the formation of an industrial
structure, mode of production, lifestyle and spatial pattern that saves resources and protects the environment,
and unswervingly follows the high-quality development path of ecological priority, green and low-carbon. Green
41
Annual Report 2021 of China Fangda Group Co., Ltd.
buildings meet the requirements of energy conservation, environmental protection and carbon reduction, which is the general trend.
Prefabricated building curtain wall and photovoltaic building integration (BIPV) are expected to usher in new development
opportunities. At the same time, with the rapid growth of China's economy, China takes promoting new infrastructure
as an important part of expanding investment space and constructing a new development pattern. New urbanization,
one belt, one road construction, and the construction of Guangdong, Hong Kong and Macau will become the important driving force
and precious opportunity for the future development of smart curtain wall system and material industry.
2. Rail transport screen door business
From the perspective of the global urban rail transit industry, the construction of urban rail transit in
emerging countries and regions is in the ascendant, while the rail transit systems of major cities in developed
countries are constantly being updated and upgraded. From the perspective of domestic urban rail transit industry,
in recent years, the urbanization development strategy at the national level has also continuously injected power
into the urban rail transit industry. Some large cities have successively built a number of rail transit projects,
which has significantly improved the urban traffic situation and played an important role in giving full play
to urban functions, improving the environment and promoting economic and social development. The 14th Five Year
Plan for National Economic and Social Development of the People's Republic of China and the Outline of Long-Term Objectives for
2035, the Outline for the Construction of a Powerful Transportation Country and the Development Plan of Modern Comprehensive
Transportation System in the 14th Five Year Plan clearly put forward "Accelerating the Rail Transit Network in Urban
Agglomerations and Metropolitan Areas". As one of the "new infrastructure", urban rail transit will receive key national support.
According to the forecast data of 2021 China Urban Rail Transit Market Development Report, 101 rail transit lines in 34 cities such
as Hangzhou, Shenzhen, Guangzhou, Zhengzhou and Beijing will be newly opened and operated in 2022-2023, with a total mileage
of 2175.63 kilometers, 1243 stations and a total investment of RMB1,549.64 billion.
3. New energy industry
In 2021, relevant national departments successively issued relevant policy documents such as the guiding opinions on
accelerating the establishment and improvement of a green and low-carbon circular development economic system, the guiding
opinions on energy work in 2021, and the notice on submitting the pilot scheme for the development of roof distributed photovoltaic
in the whole county (city, district), etc. With the introduction of national policies, provincial energy and new energy
plans have been issued one after another, including photovoltaic subsidies, bidding for Internet access, project
planning, industrial planning and many other contents, covering a wide range. During the "14th five-year plan" period,
the development of photovoltaic power generation will enter a new stage of large-scale, high proportion, marketization and
high-quality development. By accelerating the construction of a new power system with new energy as the main body and improving
the consumption and storage capacity of photovoltaic power generation, we can not only realize the large-scale development of
photovoltaic power generation, but also achieve a high level of consumption and utilization. The Company's photovoltaic power
generation, as a green and environment-friendly power generation method, will give full play to its industrial
advantages, actively expand photovoltaic business and promote the high-quality development of new energy industry
in the future.
4. Real estate
It is expected that in 2022, under the guidance of the general tone of "no speculation in housing", China's real estate market is
expected to have room for improvement in regulation and control policies. In the context of the continuous promotion of new
urbanization, key resources such as population and land will accelerate the aggregation to urban agglomerations
and central cities. Regional differentiation will bring new development opportunities to Guangdong, Hong Kong
and Macao Dawan district. The industry is mature, the population is attractive, the demand of the real estate
market is strong, the integration of Shenzhen and Hong Kong is continuing, and the Shenzhen market still has
great potential in the future.
(2) Company development strategy and business plan
42
Annual Report 2021 of China Fangda Group Co., Ltd.
In 2022, the Company will be standing at a new starting point and will continue to concentrate on promoting the high-quality
development of the Company. Fully promote the two systems of high-tech industry and service industry, seek development in
innovation, and strive for Fangda to build a century old store.
(1) We will continue to develop high-tech industries. Focus on innovation, vigorously promote the upgrading of Company
management from informatization to digitization, and make full use of big data, 5g, Internet, robot and other modern technologies to
promote the intelligent process of factories and construction sites; Make full use of BIM, AR, VR and other new technologies, new
materials, new structures and new processes to promote the upgrading and iteration of high-tech products such as high-end curtain
wall, PVDF aluminum veneer and rail transit PSD system, and expand the sales scale. At the same time, vigorously develop the
peripheral products of the above industries, enrich the product structure and prevent the risks brought by a single product. Seize the
strategic opportunities of the times such as "carbon neutralization and carbon peak", develop photovoltaic building integration,
photovoltaic power stations and other new energy industries, and comprehensively control risks. Adhere to the "eight modules" to
reduce product costs, comprehensively improve the competitiveness of the company, further strengthen procurement, bidding and
supply chain management, continue to consolidate the leading position in the industry and strive to promote the leapfrog
development of the Company.
(2) Promote the development of service industry. Software development, building maintenance and testing, business
management and property management are the service industries formed by the Company in recent years. The Company
will innovate ideas, adhere to accurate service and reputation service, form a large characteristic service and
brand for promotion, and further expand the scale of the service industry, reduce energy consumption and operating
costs, ensure safe service and enhance the competitiveness of the company's service industry.
(3) Capital demand and source for projects in progress
To realize the business target in 2022, the Company will develop suitable financial and capital plans, accelerate the collection of
accounts receivable, sales payment from sales of Fangda Town, expand financing channels, and use share issuance, bank loans and
other financing products to meet the demand for capital.
(4) Risks
1. Risks of macro environment and policy changes
The Company's main business segments are closely related to macroeconomic and industrial policies and are
greatly affected by the overall macro environment. In recent years, domestic and international risk challenges
have increased significantly, and the downward pressure on economic growth has increased. If there are adverse
changes in the international and domestic macroeconomic environment, slow economic development and reduced
investment in fixed assets in the future, which will affect the demand of public building curtain wall industry
and rail transit equipment industry, or face industry depression or excessive competition, which will have an
adverse impact on the Company's future profitability, even project delay or suspension, deferred payment of
projects under construction, etc., thus affecting the Company's operating performance.
In order to better cope with the opportunities and challenges brought by changes in the economic environment
and policies, the Company will pay close attention to the changes in the macroeconomic and policy situation at
home and abroad, timely adjust the Company's business strategy, further enhance the product competitiveness and
operation and management ability, improve the market share, and deal with the risks brought by changes in the
macro environment and policies.
2. Market competition risks
In the rail transit PSD market, the technology of other domestic manufacturers is becoming more and more
mature, and the company may face the risk of intensified market competition. If the Company cannot maintain a
leading position in the market, it will have a certain adverse impact on the development and benefits of the
Company's rail transit PSD business. In this regard, the Company will continue to adopt a stable business policy,
improve the competitive advantage of products through technological innovation and fine management, accelerate
43
Annual Report 2021 of China Fangda Group Co., Ltd.
the return of funds, and improve the operation efficiency and market competitiveness of the Company.
In this regard, the Company will continue to adopt a stable business policy, improve the competitive advantage
of products through technological innovation and fine management, accelerate the return of funds, and improve
the operation efficiency and market competitiveness of the Company. While consolidating the domestic market,
the Company will step up the efforts in exploring overseas markets, thus elevating our competitiveness in global
markets and improving our resistance to risks.
3. Production and operation risks
The macro-economy and market demand have added to the fluctuation in prices of main raw materials and labor,
affecting the Company’s profitability and creating additional production and operation risks for the Company.
The Company will hedge and transfer the price fluctuation risk of some raw materials by using futures product
hedging, negotiating with partners to supplement the contract amount, reasonably arranging material procurement
plan and other measures; The Company implements a strict supplier management mechanism, actively improves the
scientific and technological level of production management, increases technology research and development, is
committed to process improvement, landing smart factories, improves the automation and intelligence of production
equipment, and reduces the loss of raw materials. The Company will continue to promote intelligent and information
construction system, widely apply new technologies and processes, strengthen staff skill training, and improve
quality and efficiency on the basis of ensuring safety.
4. Management risks
In recent years, with the expansion of the Company's business scale and the increase of the number of
subsidiaries, the daily management of the company is becoming more and more difficult, which may face the
management risk of industrial scale expansion. In addition, in recent years, the regulatory requirements for
listed companies have been continuously improved and deepened. The Company needs to further strengthen management,
continue to promote management reform, constantly optimize process and organizational structure, improve various
rules and regulations, and vigorously introduce high-quality, highly skilled and multidisciplinary technology
and management talents to improve the core competitiveness of the Company.
5. Uncertain risk of epidemic impact
The impact of COVID-19 on the global social economy is still continuing. The risk of repeated outbreak may
bring uncertainty to the future business development of the Company. The Company will continue to strengthen
epidemic prevention and control, strictly implement various epidemic prevention measures, and ensure the orderly
production and operation of the Company.
XI. Reception of investigations, communications, or interviews in the reporting period
√ Applicable □ Inapplicable
Main content
involved and Disclosure of
Time/date Place Way Visitor Visitor
materials information
provided
Investors
Research participating in
Business and Investor Relationship
Thursday, March network the Company's
Others Individual future Record Form on
25, 2021 platform 2020
development www.cninfo.com.cn
appointment Performance
Presentation
44
Annual Report 2021 of China Fangda Group Co., Ltd.
Investors
Tuesday, participating in Business and
https://rs.p5w.net/html/
November 30, http://rs.p5w.net/ Others Individual the Company's future
130758.shtml
2021 collective development
reception day
45
Annual Report 2021 of China Fangda Group Co., Ltd.
Chapter IV Corporation Governance
1. Overview
During the report period, the Company strictly complied with the Company Law, Securities Law, Governance Standards for
Listed Companies, Shenzhen Stock Exchange Share Listing Rules, Operation Regulations for Listed Companies in the Main Board
of Shenzhen Stock Exchange, continued to improve the legal person governance structure and has formulated a series of internal
management systems covering various aspects. The Company has set up a comprehensive and effective internal control system in
important decision making, related transaction decision making, financial management, HR management, administration, purchase,
production and sales management, confidentiality and information disclosure.
Any significant difference between the actual situation of corporate governance and the laws, administrative regulations and the
provisions on the governance of listed companies issued by the CSRC
□ Yes √ No
There is no significant difference between the actual situation of corporate governance and the laws, administrative regulations and
the provisions on the governance of listed companies issued by the CSRC.
2、 The independence of the Company relative to the controlling shareholders and actual
controllers in ensuring the company's assets, personnel, finance, institutions, business, etc.
(1) In the aspect of business: The Company has its own purchasing, production, sales, and customer service system which
performing independently. There is not any material related transactions occurred with the controlling shareholders.
(2) In personnel, the labor management, personnel and salary management are operated independently from the controlling
shareholder. The senior managements take salaries from the Company and none of them takes senior management position in the
controlling party.
(3) In assets, the Company owns its production, supplementary production system and accessory equipment independently, and
possesses its own industrial properties, non-patent technologies, and trademark.
(4) In organization, the production and business operation, executive management, and department setting are completely
independent from the controlling shareholder. No situation of combined office exists. The Company adjusts its organizing structure
only for its own practical requirement of development and management.
(5) In accounting, the Company has its own independent accounting and auditing division, established independent and
completed accounting system and management rules, has its own bank account, and exercise its liability of taxation independently.
3. Competition
□ Applicable √ Inapplicable
46
Annual Report 2021 of China Fangda Group Co., Ltd.
4. Annual and extraordinary shareholder meetings held during the report period
1. Annual shareholder meeting during the report period
Participation of
Meeting Type Date Date of disclosure Meeting resolution
investors
The following
proposals were
considered and
adopted: 1. 2020
work report of the
Board of Directors;
2. 2020 work report
of the Board of
Supervisors; 3. Full
text and summary of
2020 annual report;
4. 2020 financial
final accounts report;
5. 2020 profit
2020 Annual Annual shareholders’ Monday, April 12, Tuesday, April 13, distribution plan; 6.
25.33%
Shareholder Meeting meeting 2021 2021 Proposal on applying
for credit and
providing guarantee
to banks and other
financial institutions;
7. Proposal on hiring
an audit institution in
2021; 8. Proposal on
cancellation of B
shares repurchased
in 2020, reduction of
registered capital
and amendment of
the articles of
association.
2. Shareholders of preference shares of which voting right resume convening an extraordinary
shareholders’ meeting
□ Applicable √ Inapplicable
47
Annual Report 2021 of China Fangda Group Co., Ltd.
5. Particulars about the Directors, Supervisors, and Senior Management
1. Profiles
Numbe
Numbe Numbe
r of Increas Decreas Other
r of r of
Starting End shares ed ed increas
PRINT restricte shares
Positio Job date of date of held at Stock shares shares e and Reason
ED Sex Age d held at
n status the the beginni option in this in this decreas s
NAME shares end of
term term ng of period period e
granted the
the (share) (share) (share)
(share) period
period
Monda
Chairm
Xiong y, Monda
an, In 3,060,6 3,060,6
Jianmin M 64 Novem y, May
preside office 57 57
g ber 20, 8, 2023
nt
1995
Friday,
Monda
Xiong Directo In April
M 53 y, May
Jianwei r office 16,
8, 2023
1999
Zhou Monda Monda
Directo In
Zhigan M 59 y, April y, May
r office
g 9, 2007 8, 2023
Tuesda
Zhou Vice Monda
In y, April
Zhigan preside M 59 y, May
office 11,
g nt 8, 2023
2017
Tuesda
Monda
Lin Directo In y, April
M 44 y, May
Kebin r office 11,
8, 2023
2017
Vice Friday, Monda
Lin In
preside M 44 June 6, y, May
Kebin office
nt 2008 8, 2023
Tuesda
Indepen Monda
Guo In y, April
dent M 60 y, May
Jinlong office 11,
director 8, 2023
2017
Indepen Monda
Huang In 8 May
dent M 59 y, May
Yaying office 2020
director 8, 2023
48
Annual Report 2021 of China Fangda Group Co., Ltd.
Cao Indepen Monda
In 8 May
Zhongx dent M 43 y, May
office 2020
iong director 8, 2023
Supervi
sory
Friday,
Commi Monda
Dong In Decem
ttee M 43 y, May
Gelin office ber 28,
meeting 8, 2023
2018
conven
er
Tuesda
Monda
Cao Supervi In y, April
F 43 y, May
Naisi sor office 11,
8, 2023
2017
Fan Monda
Supervi In 8 May
Xiaodo M 35 y, May 8,800 8,800
sor office 2020
ng 8, 2023
Wei Vice Friday, Monda
In
Yuexin preside M 53 July 29, y, May
office
g nt 2011 8, 2023
Secreta Tuesda
Xiao Monda
ry of In y, June
Yangjia M 37 y, May
the office 23,
n 8, 2023
Board 2020
3,069,4 3,069,4
Total -- -- -- -- -- -- 0 0 0 0 0 --
57 57
During the reporting period, whether there was any resignation of directors and supervisors and dismissal of senior managers during
their term of office
□ Yes √ No
Changes in the Directors, Supervisors and Senior Executives
□ Applicable √ Inapplicable
2. Office Description
Professional background, work experience and main duties in the Company of existing directors, supervisors and senior management
1. Mr. Xiong Jianming: Ph.D. in business administration, senior engineer. He is currently the chairman and President of the company
and a deputy to the 13th National People's Congress. He was once employed by Jiangxi Provincial Machinery Design Academe,
Administration Bureau of Shekou District of Shenzhen government, etc., deputy to the 10th People’s Congress
of Guangdong Province, deputy to the 2nd, 3rd and 6th People's Congress of Shenzhen City.
2. Mr. Xiong Jianwei: Master of business administration. Now he is the director of the Company, chairman of Fangda Jianke
company, and member of the 14th Nanchang CPPCC Standing Committee.
3. Mr. Zhou Zhigang: Bachelor degree. He is now the director and vice president of the Company. He used to be the Secretary of the
49
Annual Report 2021 of China Fangda Group Co., Ltd.
board of directors.
4. Mr. Lin Kebing: Bachelor degree. He is now the director and vice president of the Company. He was once the financial director of
the Company.
5. Guo Jinlong: master's degree, CPA. He was a member of the fifth session of the CPPCC of Shenzhen City. He is currently
the deputy to the sixth session of the People's Congress of Shenzhen, vice chairman of Guangdong Certified Public
Accountants Association (limited liability partnership), partner of ShineWing Certified Public Account, and an
independent director of the Company, Shenzhen Sanlipu Photoelectric Technology Co., Ltd. and Inner Mongolia Furui
Medical Technology Co., Ltd. He was a former member of the 5th CPPCC Shenzhen.
6. Mr. Huang YAYING: Master, Professor, part-time lawyer. He is currently a professor of Shenzhen University and an
independent director of the Company, Shenzhen BAOYING Construction Holding Group Co., Ltd., Shenzhen Lihe Kechuang
Co., Ltd., Shennan Circuit Co., Ltd. and Huafu Fashion Co., Ltd. He was once a professor of Northwest University
of Political Science and Law, and dean of Shenzhen University Law School.
7. Mr. Cao Zhongxiong: doctor, now is the executive director of New Economy Research Institute of comprehensive development
and Research Institute (Shenzhen, China). He is engaged in the research and consulting work of new economy and enterprise
strategy. He is an independent director of the Company. He was once a technician of China National Chemical
Corporation Bluestar Cleaning Agent Co., Ltd. of China National Chemical Corporation.
8. Mr. Dong Gelin: Bachelor degree, senior engineer. He is currently the convener of the board of supervisors and the assistant to the
president of the company. He was once a designer of Shenzhen Fangda Jianke, a wholly-owned subsidiary of the Company,
chief engineer of the designing institution, assistant to the general manager, and general manager of Beijing
branch of Fangda Jianke. He is now the vice general manager of Fangda Jianke.
9. Ms. Cao Naisi: Bachelor's degree, intermediate economist, currently Supervisor of the Company and Deputy General Manager of
Fangda Jianke. She once served as the securities affairs representative of the Company, the director of the audit
and supervision department, the deputy director of the human resources department, the general manager of Fangda
Jianke Beijing Branch, the general manager of Fangda Jianke South China Branch and so on.
10. Mr. Fan Xiaodong: Bachelor degree, major in law. He joined the legal department of the Company in 2011. He is now the
supervisor and vice minister of the legal department of the Company.
11. Mr. Wei Yuexing holds a Bachelor degree and is a senior engineer. He is the vice president of the and general manager
of Fangda Jianke.
12. Mr. Xiao Yangjian: Bachelor degree. Now he is the Secretary of the board of directors of the Company. He once served as
deputy general manager and Secretary of the board of directors of Shenzhen Xiongtao Power Technology Co., Ltd.
and deputy general manager and Secretary of the board of directors of Shenzhen Guangfeng Technology Co., Ltd.
Offices held at shareholders entities
√ Applicable □ Inapplicable
Whether any
Starting date of End date of the remuneration is
Name Shareholder entity Office
the term term paid at the
shareholder entity
Thursday,
Xiong Jianming Shengjiu Investment Ltd. Director October 6, No
2011
Gong Qing Cheng Shi Li He Investment Executive Tuesday,
Wei Yuexing No
Management Partnership Enterprise partner December 20,
50
Annual Report 2021 of China Fangda Group Co., Ltd.
(limited partner) 2016
Office
None
description
Offices held at other entities
√ Applicable □ Inapplicable
Whether any
Starting date of End date of the remuneration is
Name Entity name Office
the term term paid at the
shareholder entity
ShineWing Certified Public Accountants Saturday,
Guo Jinlong Partner Yes
(limited liability partnership) October 1, 2005
Shenzhen Sanlipu Photoelectric Technology Independent Friday, July 10,
Guo Jinlong Yes
Co., Ltd. director 2020
Inner Mongolia Furui Medical Technology Independent Wednesday,
Guo Jinlong Yes
Co., Ltd director May 20, 2020
Tuesday,
Huang Yaying Shenzhen University Professor September 16, Yes
2003
Shenzhen BAOYING Construction Holding Independent Tuesday, June
Huang Yaying Yes
Group Co., Ltd. director 2, 2020
Monday,
Shenzhen Lihe Technology Innovation Co., Independent
Huang Yaying February 10, Yes
Ltd. director
2020
Independent Tuesday, April
Huang Yaying Shennan Circuits Co., Ltd. Yes
director 6, 2021
Thursday,
Independent
Huang Yaying Huafu Fashion Co., Ltd. December 16, Yes
director
2021
Executive
director of
Thursday,
Cao General Development Research Institute New Friday, December
January 15, Yes
Zhongxiong (Shenzhen, China) Economy 31, 2021
2015
Research
Institute
Office
The above-mentioned three are independent directors of the Company.
description
Penalties given by existing securities regulators on directors, supervisors and senior management and those who have resigned in the
report period
□ Applicable √ Inapplicable
51
Annual Report 2021 of China Fangda Group Co., Ltd.
III. Remunerations of the Directors, Supervisors and Senior Executives
Decision making procedures, basis and actual payment of remunerations of the Directors, Supervisors and Senior Executives
1. Remuneration schemes for directors and supervisors are proposed by the Remuneration and Assessment Committee
of the Board, and implemented upon approval of the Board and the Shareholders’ Meetings; the remuneration schemes
for executives are approved and implemented by the Board.
Remuneration for directors and supervisors are decided by the shareholders’ meeting. Remunerations for
executives are composed of wages and performance bonus as decided by the Board.
Payment on monthly basis
Remunerations of the Directors, Supervisors and Senior Executives of the Company During the reporting period
In RMB10,000
Remuneration
PRINTED Total
Position Sex Age Job status from related
NAME remuneration
parties
Chairman,
Xiong Jianming M 64 In office 224.70 No
president
Xiong Jianwei Director M 53 In office 116.63 No
Director, vice
Zhou Zhigang M 59 In office 90.39 No
president
Director, vice
Lin Kebin M 44 In office 114.26 No
president
Independent
Guo Jinlong M 60 In office 8 No
director
Independent
Huang Yaying M 59 In office 8 No
director
Independent
Cao Zhongxiong M 43 In office 8 No
director
Supervisory
Dong Gelin Committee M 43 In office 75.33 No
meeting convener
Cao Naisi Supervisor F 43 In office 62.66 No
Fan Xiaodong Supervisor M 35 In office 46.39 No
Wei Yuexing Vice president M 53 In office 114.26 No
Secretary of the
Xiao Yangjian M 37 In office 77.78 No
Board
Total -- -- -- -- 946.40 --
52
Annual Report 2021 of China Fangda Group Co., Ltd.
VI. Performance of directors during the report period
1. Board of Directors in the reporting period
Date of
Meeting Date Meeting resolution
disclosure
Deliberated and adopted: 1. 2020 president's work report; 2. 2020 work report of
the board of directors; 3. Full text and summary of 2020 annual report; 4. 2020
annual financial statement report; 5. 2020 profit distribution plan; 6. Proposal on
the self-evaluation report of internal control in 2020; 7. Proposal on applying for
credit and providing guarantee to banks and other financial institutions; 8.
Proposal on hiring an audit institution in 2021; 9. Feasibility analysis on carrying
th
6 Meeting of the Friday, Tuesday, out foreign exchange derivatives trading business; 10. Proposal on carrying out
9th Board of March 19, March 23, foreign exchange derivatives trading business; 11. 2020 social responsibility
Directors 2021 2021 report; 12. Proposal on the acquisition of equity and related party transactions by
wholly-owned subsidiaries; 13. Proposal on cancellation of B shares repurchased
in 2020, reduction of registered capital and amendment of the articles of
Association; 14. Proposal on Revising the information disclosure management
system; 15. Proposal on Amending the registration system for insiders of inside
information; 16. Proposal on Revising the internal audit system; 17. Proposal on
convening the 2020 annual general meeting of shareholders.
7th meeting of the Monday, Wednesday,
9th Supervisory April 26, April 28, Reviewed the 2021 Q1 Report and Text;
Committee 2021 2021
Deliberated and passed: 1. The proposal on Authorizing the company's
8th Meeting of the Monday,
Friday, May management to start the planning of domestic listing of spin off holding
9th Board of May 17,
14, 2021 subsidiaries; 2. Proposal on transferring part of the equity of the holding
Directors 2021
subsidiary; 3. Proposal on changing the use of some houses in Fangda building.
9th Meeting of the Monday, Wednesday,
th
9 Board of August 16, August 18, Reviewed the Interim Report 2021 and the Summary.
Directors 2021 2021
110th meeting of the Wednesday, The proposal on changing the use of some houses of Nanchang Fangda Center
9th Board of September project was deliberated and passed. (Note: this meeting did not meet the disclosure
Directors 29, 2021 standard and need not be disclosed)
Reviewed and approved: 1. The third quarter report of the Company in 2021; 2.
11th Meeting of Thursday, Saturday,
Feasibility analysis on carrying out derivatives hedging business; 3. Proposal on
Meeting of the 9th October 28, October 30,
developing derivatives hedging business; 4. Proposal on using some idle self
Board of Directors 2021 2021
owned funds for cash management.
2. Directors’ presenting of board meetings and shareholders’ meetings in the report period
Directors’ presenting of board meetings and shareholders’ meetings in the report period
53
Annual Report 2021 of China Fangda Group Co., Ltd.
Time of board Number of Number of
Number of Number of Absent for two
meetings Presented by board meetings shareholders'
Name of director board meetings board meetings consecutive
should have telecom attended by meetings
attended not attended meetings
attended proxy attended
Xiong Jianming 6 3 3 0 0 No 1
Xiong Jianwei 6 3 3 0 0 No 1
Zhou Zhigang 6 3 3 0 0 No 1
Lin Kebin 6 3 3 0 0 No 1
Guo Jinlong 6 3 3 0 0 No 1
Huang Yaying 6 3 3 0 0 No 1
Cao Zhongxiong 6 3 3 0 0 No 1
Statement for absence for two consecutive board meetings
None
3. Objection raised by directors
Any objection raised by directors against the Company’s related issues
□ Yes √ No
Directors made no objection on related issued of the Company in the report period.
4. Other statement for performance of directors
Adoption of suggestion proposed by directors
√ Yes □ No
Statement for suggestion adopted or not by the Company
The directors of the Company shall perform their duties in strict accordance with the provisions of the Company
Law, the Securities Law, the Guidelines for the Governance of Listed Companies, the Stock Listing Rules of Shenzhen
Stock Exchange, the Articles of Association and other laws and regulations and the Company's system. During the
reporting period, the directors of the Company attended the meetings of the board of directors and the general
meeting of shareholders, and expressed their views and in-depth discussions on various proposals submitted to
the board of directors for consideration, made suggestions for the healthy development of the Company, fully
considered the interests and demands of minority shareholders when making decisions, and effectively strengthened
the feasibility of the decision-making of the board of directors. At the same time, the directors of the Company actively
participate in relevant training, improve their ability to perform their duties, actively pay attention to the company's operation and
management information, financial status and major events, and promote the sustainable, stable and healthy development of the
Company's production and operation. The independent directors are diligent and conscientious, carefully deliberating
various proposals of the board of directors of the Company, and expressing independent opinions on the improvement
of the Company's system, major operation and management matters, company guarantee, profit distribution and other
related matters. The relevant suggestions of the independent directors to the Company have been adopted by the
company, which has played a positive role in safeguarding the interests of the Company and minority shareholders.
54
Annual Report 2021 of China Fangda Group Co., Ltd.
VII. Special committees under the board of directors during the reporting period
Numb
Other
er of Details of
Committe Important opinions and perform
Membership meetin Date Meeting content objections
e name suggestions put forward ance of
gs (if any)
duties
held
Heard and considered: 1. Review
of the Company's production and
Friday, After full communication
Xiong operation in 2020; 2. The
March 19, and discussion, all proposals
Developm Jianming, Company's 2021 annual
2021 were unanimously passed.
ent Cao production and operation work
Strategy Zhongxiong, 2 plan.
Committe Lin kebing, Listened to and reviewed the
e Zhou Monday, review of the Company's After full communication
Zhigang August 16, production and operation in the and discussion, all proposals
2021 first half of 2021 and the main were unanimously passed.
work in the second half of 2021;
The financial and
accounting report of the
Company for 2020 has been
prepared in accordance with
the new accounting
standards for business
Listened to and reviewed the
enterprises and relevant
Monday, financial statements of the
financial regulations of the
March 15, Company in 2020 after the
Company, which truly
2021 preliminary opinions issued by the
reflects the financial status
annual audit accountant
of the Company as of
Guo Jinlong,
Audit December 31, 2020 and the
Huang
Committe 5 operating results and cash
Yaying, Lin
e flow in 2020. It is agreed to
kebing
determine the final financial
report for 2020 on this basis.
After listening to the financial
work report and internal audit After full communication
work report of 2020, the and discussion, it was
Friday, Company reviewed and approved: unanimously approved and
March 19, 1. The audited financial and agreed to submit all
2021 accounting statements of 2020; 2. proposals to the board of
Proposal for the Company to hire directors of the company for
an audit institution in 2021; 3. deliberation.
Feasibility analysis on carrying
55
Annual Report 2021 of China Fangda Group Co., Ltd.
out foreign exchange derivatives
trading business; 4. Proposal on
carrying out foreign exchange
derivatives trading business; 5.
The Company's internal audit
work plan for 2021; 6. the
Company's self-evaluation report
on internal control in 2020.
After full communication
and discussion, the proposal
The financial statements of the
Monday, was unanimously adopted
Company for the first quarter of
April 26, and agreed to be submitted
2021 were reviewed and
2021 to the board of directors of
approved.
the Company for
deliberation.
After full communication
and discussion, the proposal
The financial statements of the
Monday, was unanimously adopted
Company for the half year of
August 16, and agreed to be submitted
2021 were reviewed and
2021 to the board of directors of
approved.
the Company for
deliberation.
Reviewed and approved: 1.
After full communication
Unaudited financial statements of
and discussion, it was
the company for the third quarter
Thursday, unanimously approved and
of 2021; 2. Feasibility analysis on
October agreed to submit all
carrying out derivatives hedging
28, 2021 proposals to the board of
business; 3. Proposal on
directors of the company for
developing derivatives hedging
deliberation.
business;
In 2020, the directors and
senior managers of the
Company have diligently
and conscientiously
Remunerat
Huang completed the business
ion and The proposal on the remuneration
Yaying, Cao Friday, objectives and other work
Assessme of directors and senior managers
Zhongxiong, 1 March 19, tasks in 2020. The
nt in 2020 was considered and
Xiong 2021 remuneration of directors
Committe adopted.
Jianwei and senior managers in 2020
e
is in line with the
management plan of
directors' allowance and
senior managers'
56
Annual Report 2021 of China Fangda Group Co., Ltd.
remuneration of the
Company.
VIII. Performance of Supervisory Committee
(1) Risks for the Company discovered by the Supervisory Committee
□ Yes √ No
No disagreement with supervisory issues by the Supervisory Committee during the report period.
(2) The Supervisory Committee’ Work Report 2021
In 2021, the Supervisory Committee performed its duties and obligations in supervision and protect all
shareholders’ and the Company’s interests in accordance with the Company Law, Share Listing Rules, Articles
of Association and Rules of the Procedure of the Supervisory Committee. The 2021 supervisory committee's work
plan is as follows:
1. Opinions
(1) Legal compliance
In 2021, the Board of Supervisors of the Company supervised the operation of the Company in accordance with
the law. In the report period, the Company has been operated in accordance with law. The convening of meeting
of the Board and the decision-making process are compliant with law, regulations and Articles of Association;
the internal control system is solid. Directors and senior management have performed their obligations. No
violation against law, regulations, Articles of Association and interests of the Company and shareholders was
discovered.
(2) Financial condition
In 2021, the Board of Supervisors supervised the financial affairs of the Company. The accounting management
has been compliant with the Accounting Law, Enterprise Accounting Standard. No false, misleading statement or
significant omission was found in financial statements. The financial reports of the Company reflect the
Company’s financial position, operation performance, cash flows and major risks truthfully, accurately and
completely. The CPA has issued the standard auditor's report in 2021, which is objective, fair and truthful.
It reflects the Company's financial position and operation performance.
(3) Implementation of internal control
According to the board of supervisors, the design and operation of the internal control is effective and
meets the Company's management and development requirements. It can ensure the truthfulness, lawfulness,
completeness of the financial materials and ensure the safety and completeness of the Company’s property. In
2021, the company did not violate the securities law, the standards for the governance of listed companies, the self regulatory
guidelines for listed companies of Shenzhen Stock Exchange No. 1 - standardized operation of listed companies on the main board
and the Company's internal control system. The 2021 Internal Control Self-evaluation Report truthfully and objectively
reflects the establishment, implementation and improvement of the Company’s internal control system. There are
no significant or important problems in the financial and non-financial reports in the report period.
(4) Associated Transactions
The Board of Supervisors held that the related transactions of the Company were carried out in strict
accordance with the related transaction rules and agreements, in line with the principle of fairness and
rationality, and did not damage the interests of the Company and shareholders.
(5) Fulfillment of social responsibilities
In 2021, the Company has made due contributions to economic development and environmental protection, actively
participated in public welfare and charity, conscientiously fulfilled its due social responsibility, and
safeguarded the interests of shareholders, customers and employees.
2. Meetings and resolutions of the supervisory meeting in the report period
Four meetings were held in 2021, all of which are on-site meetings. All proposals were approved and disclosed
as required:
Convening
No. Meeting Date method Topic
57
Annual Report 2021 of China Fangda Group Co., Ltd.
1. Reviewing the Company's 2020 Supervisory
Committee’s Work Report; 2. Reviewing the Company's
4th meeting of 2020 Annual Report and Summary 3. Reviewing the
the 9th Friday, March 19, Company's 2020 Financial Settlement Report; 4.
1 On-site
Supervisory 2021 Reviewing the Company's Proposal of Profit Distribution
Committee in 2020; 5. Reviewing the Company's Proposal of
Engaging Auditor for 2021; 6. Reviewing the Company's
2020 Internal Control Self-evaluation Report;
5th meeting of
the 9th Monday, April 26,
2 On-site 2021 Q1 Report and Text;
Supervisory 2021
Committee
6th meeting of
the 9th Monday, August
3 On-site 2021 Interim Report and the Summary of the Company
Supervisory 16, 2021
Committee
7th meeting of
the 9th Thursday, October
4 On-site Proposal regarding the Company's 2021 Q3 Report
Supervisory 28, 2021
Committee
(III) The Supervisory Committee's Work Report 2022
In 2022, the Supervisory Committee of the Company will closely focus on the overall business objectives of
the Company, actively perform the supervision function of the Supervisory Committee and supervise the standardized
operation of the Company in accordance with the Company Law and other laws and regulations, the articles of
association and the rules of procedure of the Supervisory Committee; at the same time, it will continuously
strengthen its professional quality, strive to improve its professional ability and performance level; and
strengthen the supervision of major projects and related parties of the Company, pay attention to the Company's
risk management and internal control system construction, ensure that the Company implements effective internal
control measures, and further promote the Company's standardized operation.
IX. Employees
1. Staff number, professional composition and education
Staff number of the parent at the end of the reporting period 63
Number of on-the-job employees of major subsidiaries at the end
2,331
of the reporting period (person)
Total number of active employees at the end of the reporting
2,959
period (person)
Number of employees receiving remuneration in the period 2,959
Resigned and retired staff number to whom the parent and major
0
subsidiaries need to pay remuneration
58
Annual Report 2021 of China Fangda Group Co., Ltd.
Professional composition
Categories of professions Number of people
Production 1,433
Sales & Marketing 85
Technicians 1,170
Finance & Accounting 78
Administration 193
Total 2,959
Education
Categories of education Number of people
High school or below 1,459
College diploma 560
Bachelor 913
Master’s degree 25
Doctor’s degree 2
Total 2,959
2. Remuneration policy
Staff remuneration policy: The Company’s staff remuneration comprises post wage, performance wage, allowance
and annual bonus. The Company has set up an economic responsibility assessment system according to the annual
operation target and responsibility indicators for all departments. The performance wage is determined by the
economic indicators, management indicators, optimization indicators and internal control. The annual bonus is
determined by the Company's annual profit and fulfillment of targets set for various departments. The staff
remuneration and welfare will be adjusted according to the Company’s business operation and changes in the local
standard of living and price index.
3. Training program
Staff training plan: The Company has paid continuous attention to training and development of the staff and
introduces innovative learning as part of the long-term strategy. We provide training programs through different
channels and in different fields for different employees will help them fulfill their works, including new staff
training, on-the-job training, operation and management training programs. These programs have largely elevated
capabilities of the staff and underpin the success of the Company.
4. Labor outsourcing
√ Applicable □ Inapplicable
Total number of hours of labor outsourcing 14,995,732.36
59
Annual Report 2021 of China Fangda Group Co., Ltd.
Total remuneration paid for labor outsourcing (RMB) 535,066,113.25
X. Profit distribution of the Company and conversion of capital reserve into share capital
Establishment, implementation or adjustment of profit distribution policies especially the cash dividend policy during the report
period
√ Applicable □ Inapplicable
According to the deliberation and approval of the Company's 2020 annual general meeting of shareholders,
no cash dividend, bonus shares, capital reserve is not transferred to share capital in 2020, and undistributed
profits are carried forward to the next year. The reason why there is no profit distribution in 2020 is that
according to the development needs of the Company, the undistributed profits in 2020 will be used for the operation
and development of the Company. The total amount of cash dividends of the company in the last three years (2018-2020)
is RMB620,615,200 (including cash paid for repurchase B shares), accounting for 62.56% of the average annual
net profit attributable to the shareholders of the listed company in recent three years. There is no significant
difference between the cash dividend of the Company and the average of the listed companies in the industry.
Explanation of Cash Dividend Distribution Policies
Comply with the Articles of Association or resolution made at the General Shareholders' Yes
Meeting
Clear and definite distribution standard and proportion Yes
Decision-making procedure and mechanism Yes
Independent directors fulfill their duties Yes
Middle and small shareholders express their opinions and claims. There rights are well Yes
protected.
Cash dividend distribution policies are adjusted or revised according to law Inapplicable
The company made profits during the reporting period and the profit available to shareholders of the parent company was positive,
but no cash dividend distribution plan was proposed
□ Applicable √ Inapplicable
Profit Distribution and Reserve Capitalization in the Report Period
√ Applicable □ Inapplicable
Bonus shares for every ten shares 0
Cash dividend for every ten shares (yuan, tax-included) 0.50
A total number of shares as the distribution basis 1,073,874,227
Cash dividend (including tax) 53,693,711.35
Cash dividend paid in other manners (such as repurchase of 0.00
shares)
Total cash dividend (including other manners) 53,693,711.35
Distributable profit (yuan) 1,290,879,760.71
Proportion of cash dividend in the distributable profit 100%
(including other manners)
60
Annual Report 2021 of China Fangda Group Co., Ltd.
Cash dividend
The Company is in a fast growth stage. Therefore, the cash dividend will reach 20% of the profit distribution at least.
Details of profit distribution or reserve capitalization plan
The profit distribution plan for 2021 approved by the board of directors of the Company is: The Company plans to distribute cash
dividends of RMB0.50 (tax included) for every 10 shares to all shareholders based on the total share capital of 1,073,874,227
shares on December 31, 2021, with a total cash distribution of RMB53,693,711.35. No dividend shares or capitalization share
was issued in the year. After the announcement of the Company’s profit distribution plan to the time of implementation, if the
total share capital changes, in accordance with the principle of ―distributing cash dividends of RMB 0.50 (tax included) for every
10 shares‖, the total share capital after the market closes on the equity registration date when the profit distribution plan is
implemented shall be used. The total amount of cash dividends will be disclosed in the Company's profit distribution
implementation announcement.
XI. Share incentive schemes, staff shareholding program or other incentive plans
□ Applicable √ Inapplicable
There are no share incentive schemes, staff shareholding program or other incentive plans in the report period
XII. Construction and implementation of internal control system during the reporting period
1. Construction and implementation of internal control
The Company has established and improved the Company's internal control system in accordance with the provisions
of the basic norms of enterprise internal control and its supporting guidelines and other internal control
supervision requirements, combined with the actual situation of the Company, and has been effectively implemented.
The audit committee and the internal audit department jointly form the Company's risk internal control management
organization system to supervise and evaluate the Company's internal control management, The Company's
self-evaluation report on internal control in 2021 comprehensively, truly and accurately reflects the actual
situation of the company's internal control. During the reporting period, the Company has no major defects and
important defects in internal control.
2. Major problems in internal control discovered in the report period
□ Yes √ No
XIII. Management and control of subsidiaries during the reporting period
Problems
Integrati Follow up
encountere Solutions Solution
Company Integration plan on solution
d in taken progress
progress plan
integration
Integrate and standardize the organizational structure,
Complet Inapplicabl Inapplicabl
Yunzhu internal control system, financial system and None Inapplicable
ed e e
information disclosure of subsidiaries in accordance
61
Annual Report 2021 of China Fangda Group Co., Ltd.
with relevant laws and regulations and the articles of
association.
XIV. Internal control self-evaluation report or internal control audit report
1. Internal control self-evaluation report
Date of disclosure of the internal control
Wednesday, March 30, 2022
evaluation report
Disclosure of the internal control
www.cninfo.com.cn
evaluation report
Percentage of assets in the evaluation
scope in the total assets in the consolidated 91.35%
financial statements
Percentage of operation income in the
evaluation scope in the total operation
92.18%
income in the consolidated financial
statements
Standard
Type Financial report Non-financial report
1. The following problems are considered I. The following condition indicates
major problems: 1. Non-effective control significant problems in the internal
environment; 2. corrupt practice by directors, control of non-financial reports: 1.
supervisor and senior management, causing Serious violation against national laws,
substantial loss and impacts for the regulations or specifications; 2. Serious
Company; 3. Substantial mistakes in the business system problems and system
financial statements in the period discovered ineffectiveness; 3. Major or important
by the CPA, which are not discovered by the problems cannot be corrected; 4. Lack of
internal control; 4. Ineffective supervision of internal control and poor management; 5.
the internal control by the Company’s Loss of management personnel or key
auditing department 2. The following employees; 6. Safety and environmental
Standard
problems are considered significant accidents that cause major adverse
problems: 1 accounting policies are selected impacts; 7. Other situations that cause
and used without complying to widely major adverse impacts on the Company.
accepted accounting standards; 2. No II. The following situations indicate that
anti-corrupt and important balance system there may be significant problems with
and control measures are taken; 3. Separate the internal control: 1. business system
or multiple problems in the preparation of problems and system ineffectiveness; 2.
financial reports, which are serious enough Major or important problems cannot be
to affecting the truthfulness and accuracy of corrected; 3. Other situations that cause
the reports; no control system is established major adverse impacts on the Company
and no related compensation system is III. The following situation indicate
62
Annual Report 2021 of China Fangda Group Co., Ltd.
implemented for accounts of irregular or likely normal problems in the internal
special transactions 3. Other problems are control: 1. Problems in the general
considered normal problems. business system; 2. Normal problems in
the internal control supervision cannot be
correctly promptly.
1. Significant problem: 1 mistakes affecting
5% and more of the pre-tax profit and more
than RMB5 million in the consolidated
statements; 2. Mistakes affecting 5% and
more of the consolidated assets and more
See the recognition standard of the
than RMB5 million 2. Important problem: 1.
Standard internal control problems for financial
Mistakes affecting 1%-5% of the pre-tax
statements
profit in the consolidated statements; 2.
Mistakes affecting 1%-5% the consolidated
assets. III. Normal problem: 1. Mistakes
affecting less than 1% of the pre-tax profit
and total assets of the consolidate statements.
Significant problems in financial
0
statements
Significant problems in non-financial
0
statements
Important problems in financial statements 0
Important problems in non-financial
0
statements
2. Internal control audit report
√ Applicable □ Inapplicable
Comments in the internal control audit report
We believe that China Fangda Group has maintained effective internal control on financial reports according to Basic Regulations
on Enterprise Internal Control and related regulations on Friday, December 31, 2021.
Disclosure of internal auditor’s
Disclosed
report
Date of disclosure of the internal
Wednesday, March 30, 2022
control audit report
Source of disclosure of the internal
www.cninfo.com.cn
control audit report
Opinion type Standard opinion auditor’s report
Problems in non-financial
No
statements
Non-standard internal control audit report by the CFA
63
Annual Report 2021 of China Fangda Group Co., Ltd.
□ Yes √ No
Consistency between the internal control audit report and self-evaluation report
√ Yes □ No
XV. Rectification of problems in self inspection of special actions for governance of listed
companies
None
64
Annual Report 2021 of China Fangda Group Co., Ltd.
Chapter V Environmental and social responsibility
1. Major environmental problem
Whether the Company and its subsidiaries are key polluting companies disclosed by the environmental protection authority
□ Yes √ No
Administrative penalties for environmental problems during the reporting period
Impact on the
Rectification
Company or production and
Reason Violations Punishment result measures of the
subsidiary operation of listed
Company
companies
None None None None None None
Refer to other environmental information disclosed by key pollutant discharge units
During the reporting period, the listed company and its subsidiaries were not key pollutant discharge units
announced by the environmental protection department, and there were no administrative penalties for
environmental problems.
Measures and effects taken to reduce carbon emissions during the reporting period
√ Applicable □ Inapplicable
The Company pays attention to global climate change and actively explores the path of environmental
friendliness and enterprise development. Since its inception, the Company has been accompanied by a sense of
mission of green environmental protection. The Company's smart curtain wall, photovoltaic building integration
(BIPV) project, rail transit PSD system, solar photovoltaic power station and other industries have environmental
protection genes. Combined with the characteristics of the industry, the Company integrates the concept of
environmental protection into technological innovation, successively develops national and provincial key
environmental protection new products such as ventilated and photovoltaic curtain walls, nano self-cleaning and
fireproof honeycomb aluminum composite plates, and takes the lead in developing the subway PSD system with
independent intellectual property rights in China. The Company's "full height open platform screen door of rail
transit" technology has reduced the energy consumption of air conditioning and ventilation system by more than
20%, and the products of double-layer breathing curtain wall system save energy by more than 30% compared with
the traditional curtain wall. The annual emission reduction of solar photovoltaic power station in new energy
industry is equivalent to the amount of carbon dioxide absorbed by more than 100 hectares of forest, which has
contributed to the realization of the goal of "carbon peak and carbon neutralization".
The Company has established an environmental management system, and many subordinate companies have passed
the ISO14001 environmental system certification. In their daily production and operation, they seriously
implement the environmental protection laws and regulations such as the environmental protection law of the
People's Republic of China, the water pollution prevention and control law of the People's Republic of China,
the air pollution prevention and control law of the People's Republic of China, and the solid waste pollution
prevention and control law of the People's Republic of China. In 2021, the Company and its subsidiaries are not
among the key pollutant discharge units announced by the environmental protection department.
65
Annual Report 2021 of China Fangda Group Co., Ltd.
The Company advocates energy conservation and emission reduction, safety and environmental protection, and
adheres to the comprehensive implementation of "green environmental protection" measures from the aspects of
infrastructure construction, waste water treatment, lighting and greening of office areas, so as to create a
good, green and healthy office environment. The Company advocates green office, reduces the standby energy
consumption of air conditioners, computers and other electrical equipment, and reasonably sets the air
conditioning temperature in the office area to save energy. At the same time, the Company has established a
combination of electronic, networked and remote office mode, promoted "paperless office" by improving OA system
and ERP system, and actively used video conference and teleconference to replace on-site meetings, so as to improve
work efficiency and reduce various costs of on-site meetings.
Reasons for non-disclosure of other environmental information
None
2. Social responsibilities
Over the past 30 years since its establishment, the Company has adhered to its original mission and actively fulfilled its social
responsibility while creating enterprise value. The Company has earnestly performed social responsibilities in regulating governance
and operation, protecting the rights and interests of shareholders and creditors, safe production, environmental protection, energy
conservation and emission reduction, protecting the rights and interests of employees, protecting the rights and interests of suppliers,
customers and consumers, public relations and social public welfare undertakings. See cninfo.com for details
http://www.cninfo.com.cn for the 2021 social responsibility report of China Fangda Group Co., Ltd.
3. Consolidate and expand the achievements of poverty alleviation and rural revitalization
Over the past 30 years since its establishment, while creating enterprise value, the Company has adhered
to its original mission, actively fulfilled its social responsibility, gave full play to the advantages of
enterprise assistance, contributed a lot to the overall victory of China's anti-poverty campaign in 2020, and
demonstrated a high degree of family and country feelings and responsibility. The Company actively participated
in various public welfare activities, involving public welfare, anti SARS, funding for rural health care, disaster
relief, environmental protection, precision poverty alleviation, prevention and control against COVID-19 and
many other aspects. During the reporting period, the Company spent a total of RMB3.3792 yuan on social welfare
undertakings, including RMB3 million donated to the education development foundation of Nanchang University for
the construction, transformation and upgrading of the library of Nanchang University. At the same time, the Company
actively responded to the national call to consolidate the achievements of poverty alleviation and help rural
revitalization, and donated RMB100,000 yuan to Nanshan District Charity Society of Shenzhen for poverty
alleviation activities in Guangdong Province; RMB269,200 was invested to build a new plastic runway, parking
shed, teaching equipment and improve educational facilities and equipment in Nanchang Fangda Hope Primary School.
In July 2021, Zhengzhou suffered a severe rainstorm, and the subway line was flooded. The subsidiary Fangda Zhiyuan
set up a flood fighting and rescue commando overnight, fought day and night, and made great efforts to restore
the normal operation of Zhengzhou subway.
In the future, on the way of realizing the dream of becoming a powerful country, the Company will actively
assume social responsibility, be a good corporate citizen, actively help rural revitalization, carry out public
welfare actions in rural development, education, health and other dimensions, help consolidate the achievements
66
Annual Report 2021 of China Fangda Group Co., Ltd.
of poverty eradication, and make new contributions to comprehensively promoting the cause of rural revitalization.
67
Annual Report 2021 of China Fangda Group Co., Ltd.
Chapter VI Significant Events
I. Performance of promises
1. Commitments that have been fulfilled and not fulfilled by actual controller, shareholders, related parties,
acquirers of the Company
□ Applicable √ Inapplicable
There is no commitment that has not been fulfilled by actual controller, shareholders, related parties, acquirers of the Company
2. Explanation and reason of profit forecasts on assets or projects that remain in the report period
□ Applicable √ Inapplicable
II. Non-operating capital use by the controlling shareholder or related parties in the reporting
term
□ Applicable √ Inapplicable
The controlling shareholder and its affiliates occupied no capital for non-operating purpose of the Company during the report period.
III. Incompliant external guarantee
□ Applicable √ Inapplicable
The Company made no incompliant external guarantee in the report period.
IV. Description of the board of directors on the latest "non-standard audit report"
□ Applicable √ Inapplicable
V. Statement of the Board of Directors, Supervisory Committee and Independent Directors (if
applicable) on the “non-standard auditors’ report” issued by the CPA on the current report
period
□ Applicable √ Inapplicable
VI. Description of changes in accounting policies, accounting estimates or correction of major
accounting errors compared with the financial report of the previous year
√ Applicable □ Inapplicable
1. Changes in important accounting policies
(1) Implementation of new lease guidelines
68
Annual Report 2021 of China Fangda Group Co., Ltd.
On December 7, 2018, the Ministry of Finance issued the accounting standards for Business Enterprises No.
21 - leasing (hereinafter referred to as the "new leasing standards"). The Company has implemented the new leasing
standards since January 1, 2021 and adjusted the relevant contents of accounting policies. See Chapter X, V.
Changes in important accounting policies and accounting estimates in 35. Changes in important accounting policies
and accounting estimates.
For contracts existing before the first execution date, the Company chooses not to re-evaluate whether
they are leases or include leases on the first execution date.
For contracts signed or changed after the first execution date, the Company evaluates whether the contract
is a lease or includes a lease according to the definition of lease in the new lease standards.
Due to the implementation of the new lease standards, the consolidated financial statements of the Company
adjusted the use right assets of RMB5,844,154.69 and lease liabilities of RMB5,844,154.69 on January 1, 2021
accordingly. Relevant adjustments have no impact on shareholders' equity in the Company's consolidated financial
statements. Due to the implementation of the new lease standard, there is no impact on the financial statements
of the parent company of the Company.
(2) Implement the interpretation of accounting standards for Business Enterprises No. 14
On January 26, 2021, the Ministry of Finance issued the interpretation of accounting standards for Business
Enterprises No. 14 (CAI Kuai [2021] No. 1) (hereinafter referred to as "Interpretation No. 14"), which shall
come into force as of the date of promulgation. The Company implemented Interpretation No. 14 on January 26,
2021. Explanation No. 14 has no significant impact on the Company.
(3) Implement the provisions of "relevant presentation of centralized fund management" in the interpretation
of accounting standards for Business Enterprises No. 15
On December 30, 2021, the Ministry of Finance issued the interpretation of accounting standards for Business
Enterprises No. 15 (CAI Kuai [2021] No. 35) (hereinafter referred to as "Interpretation No. 15"), in which the
content of "relevant presentation of centralized fund management" shall be implemented from the date of
promulgation, and the Company shall implement the provision from December 30, 2021, which has no significant
impact on the Company.
VII. Statement of change in the financial statement consolidation scope compared with the
previous financial report
√ Applicable □ Inapplicable
There are 6 newly added companies within the scope of merger of the Company in this period, including 4 newly
added companies in the way of establishment: Fangda Zhichuang Technology Singapore Company, Fangda Zhichuang
Technology Wuhan Company, Fangda Zhichuang Technology Nanchang Company and Fangda Zhichuang Technology Dongguan
Company; two new companies were added to the business merger under the same control: Shenzhen Yunzhu Industrial
Co., Ltd. and Shenzhen Yunzhu Testing Technology Co., Ltd.
VIII. Engaging and dismissing of CPA
CPA engaged currently
Domestic public accountants name RSM Thornton (limited liability partnership)
69
Annual Report 2021 of China Fangda Group Co., Ltd.
Remuneration for the domestic public accountants (in
150
RMB10,000)
Consecutive years of service by the domestic public accountants 3
Name of certified accountants of the domestic public accountants Xie Peiren, Zeng Hui, Hu Gaosheng
Xie Peiren provided audit services for 2 years, Zeng Hui for 4
Consecutive years of service by the domestic public accountants
years and Hu Gaosheng for 2 years from 2016 to 2017.
Overseas public accountants name (if any) None
Remuneration for the overseas public accountants (in
0
RMB10,000)
Consecutive years of service by the overseas public accountants
None
(if any)
Name of certified accountants of the overseas public accountants
None
(if any)
Consecutive years of service by the domestic public accountants None
Whether the CPA is replaced
□ Yes √ No
Engaging of internal control audit CPA, financial advisor and sponsor
√ Applicable □ Inapplicable
During the reporting period, the Company continued engaging RSM China (limited liability partnership) as the financial statement
and internal control auditing CPA with a fee of RMB1.5 million.
IX. Delisting after disclosure of annual report
□ Applicable √ Inapplicable
X. Bankruptcy and capital reorganizing
□ Applicable √ Inapplicable
The Company has no bankruptcy or reorganization events in the report period.
XI. Significant lawsuit and arbitration
□ Applicable √ Inapplicable
The Company has no significant lawsuit or arbitration affair in the report period.
XII. Punishment and rectification
□ Applicable √ Inapplicable
The Company received no penalty and made no correction in the report period.
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Annual Report 2021 of China Fangda Group Co., Ltd.
XIII. Credibility of the Company, controlling shareholder and actual controller
√ Applicable □ Inapplicable
The Company and its controlling shareholders and actual controllers do not fail to perform the effective judgment of the court, and
the debts with a large amount are not paid off when due.
XIV. Material related transactions
1. Related transactions related to routine operation
□ Applicable √ Inapplicable
The Company made no related transaction related to daily operating in the report period.
2. Related transactions related to assets transactions
□ Applicable √ Inapplicable
The Company made no related transaction of assets or equity requisition and sales in the report period.
3. Related transactions related to joint external investment
□ Applicable √ Inapplicable
The Company made no related transaction of joint external investment in the report period.
4. Related credits and debts
□ Applicable √ Inapplicable
The Company had no related debt in the report period.
5. Transactions with related financial companies
□ Applicable √ Inapplicable
There is no deposit, loan, credit or other financial business between the company and the related financial company.
6. Transactions between financial companies controlled by the company and related parties
□ Applicable √ Inapplicable
There is no deposit, loan, credit or other financial business between the financial company controlled by the company and its related
parties.
7. Other major related transactions
□ Applicable √ Inapplicable
The Company has no other significant related transaction in the report period.
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Annual Report 2021 of China Fangda Group Co., Ltd.
XV. Significant contracts and performance
1. Asset entrusting, leasing, contracting
(1) Asset entrusting
□ Applicable √ Inapplicable
The Company made no custody in the report period.
(2) Contracting
□ Applicable √ Inapplicable
The Company made no contract in the report period
(3) Leasing
□ Applicable √ Inapplicable
There is no leasing during the reporting period.
2. Significant guarantee
√ Applicable □ Inapplicable
In RMB10,000
External guarantees made by the Company and subsidiaries (exclude those made for subsidiaries)
Counter
Actual
Guarantee Date of Guarantee Type of Collateral guarant Complete Related
Actual date amount of Term
provided to disclosure amount guarantee (if any) ee (if d or not party
guarantee
any)
None
Guarantee provided to subsidiaries
Counter
Actual
Guarantee Date of Guarantee Type of Collateral guarant Complete Related
Actual date amount of Term
provided to disclosure amount guarantee (if any) ee (if d or not party
guarantee
any)
since
engage of
Tuesday, Tuesday,
Fangda Joint contract
March 23, 50,000 July 27, 49,331.87 No None No Yes
Jianke liability to 3 years
2021 2021
upon due
of debt
Fangda Saturday, Wednesday, Joint since
30,000 21,679.8 No None No Yes
Jianke April 18, March 17, liability engage of
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Annual Report 2021 of China Fangda Group Co., Ltd.
2020 2021 contract
to 3 years
upon due
of debt
since
engage of
Saturday, Friday,
Fangda Joint contract
April 18, 30,000 January 29, 10,739.27 No None No Yes
Jianke liability to 3 years
2020 2021
upon due
of debt
since
engage of
Tuesday, Sunday,
Fangda Joint contract
March 23, 40,000 September 14,266.23 No None No Yes
Jianke liability to 3 years
2021 5, 2021
upon due
of debt
since
engage of
Tuesday, Wednesday,
Fangda Joint contract
March 23, 30,000 August 18, 25,675.7 No None No Yes
Jianke liability to 3 years
2021 2021
upon due
of debt
since
engage of
Tuesday, Wednesday,
Fangda Joint contract
March 23, 25,000 November 33,228.97 No None No Yes
Jianke liability to 3 years
2021 17, 2021
upon due
of debt
since
engage of
Wednesday, Wednesday,
Fangda Joint contract
January 30, 15,000 March 18, 10,000 No None No Yes
Jianke liability to 2 years
2019 2020
upon due
of debt
since
engage of
Tuesday, Friday,
Fangda Joint contract
March 23, 48,000 December No None No Yes
Jianke liability to 3 years
2021 17, 2021
upon due
of debt
Fangda Wednesday, Wednesday, Joint since
14,000 8,070.82 No None No Yes
Jianke and January 30, December liability engage of
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Annual Report 2021 of China Fangda Group Co., Ltd.
Fangda 2019 18, 2019 contract
Zhichuang to 3 years
upon due
of debt
since
engage of
Tuesday, Wednesday,
Fangda Joint contract
March 23, 40,000 July 7, 12,837.07 No None No Yes
Zhiyuan liability to 3 years
2021 2021
upon due
of debt
since
engage of
Tuesday, Wednesday,
Fangda Joint contract
March 23, 15,000 March 31, 3,076.4 No None No Yes
Zhiyuan liability to 3 years
2021 2021
upon due
of debt
since
engage of
Saturday, Friday,
Fangda Joint contract
April 18, 20,000 January 29, 2,774.26 No None No Yes
Zhiyuan liability to 3 years
2020 2021
upon due
of debt
since
engage of
Tuesday, Tuesday,
Fangda Joint contract
March 23, 15,000 September 5,399.67 No None No Yes
Zhiyuan liability to 3 years
2021 28, 2021
upon due
of debt
since
engage of
Wednesday, Wednesday,
Fangda Joint contract
January 30, 10,000 March 18, No None No Yes
Zhiyuan liability to 2 years
2019 2020
upon due
of debt
since
engage of
Tuesday, Thursday,
Fangda Joint contract
March 23, 5,000 August 12, 5,000 No None No Yes
Zhiyuan liability to 3 years
2021 2021
upon due
of debt
Kechuangy Tuesday, Thursday, Joint since
1,000 1,000 No None No Yes
uan March 23, September liability engage of
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Annual Report 2021 of China Fangda Group Co., Ltd.
Software 2021 30, 2021 contract
to 3 years
upon due
of debt
since
Fangda engage of
Tuesday,
Jiangxi Friday, July Joint contract
March 23, 6,500 2,631.04 No None No Yes
New 30, 2021 liability to 3 years
2021
Material upon due
of debt
since
Fangda engage of
Tuesday, Wednesday,
Jiangxi Joint contract
March 23, 10,000 May 26, 2,837.44 No None No Yes
New liability to 2 years
2021 2021
Material upon due
of debt
since
engage of
Wednesday, 25
Fangda Joint contract
December 135,000 February 93,000 No None No Yes
Property liability to 2 years
4, 2019 2020
upon due
of debt
since
engage of
Saturday, Wednesday,
Fangda Joint contract
April 18, 47,000 December 46,700 No None No Yes
Property liability to 3 years
2020 16, 2020
upon due
of debt
since
engage of
Tuesday, Thursday,
Fangda Joint contract
March 23, 3,500 June 3, 2,538.13 No None No Yes
Zhijian liability to 3 years
2021 2021
upon due
of debt
Total of guarantee to
Total of guarantee to
subsidiaries actually
subsidiaries approved in 369,000 426,509.21
occurred in the report
the report term (B1)
term (B2)
Total of balance of
Total of guarantee to
guarantee actually
subsidiaries approved as 590,000 350,786.67
provided to the
of the report term (B3)
subsidiaries as of end of
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Annual Report 2021 of China Fangda Group Co., Ltd.
report term (B4)
Guarantee provided to subsidiaries
Counter
Actual
Guarantee Date of Guarantee Type of Collateral guarant Complete Related
Actual date amount of Term
provided to disclosure amount guarantee (if any) ee (if d or not party
guarantee
any)
None
Total of guarantee to
Total of guarantee to
subsidiaries actually
subsidiaries approved in 0 0
occurred in the report
the report term (C1)
term (C2)
Total of guarantee provided by the Company (total of the above three)
Total of guarantee
Total of guarantee approved in
369,000 occurred in the report 426,509.21
the report term (A1+B1+C1)
term (A2+B2+C2)
Total of guarantee
Total of guarantee approved as
occurred as of the end of
of end of report term 590,000 350,786.67
report term
(A3+B3+C3)
(A4+B4+C4)
Percentage of the total guarantee occurred
63.50%
(A4+B4+C4) on net asset of the Company
Including:
Guarantees provided to the shareholders,
0
substantial controllers and the related parties (D)
Guarantee provided directly or indirectly to
objects with over 70% of liability on asset ratio 0
(E)
Amount of guarantee over 50% of the net asset (F) 74,584.68
Total of the above 3 (D+E+F) 74,584.68
For the unexpired guarantee contract, the
guarantee liability has occurred during the
reporting period or there is evidence that it is None
possible to bear joint and several repayment
liability (if any)
Statement of external guarantees violating the
None
procedure (if any)
Note of compound guarantee
None
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Annual Report 2021 of China Fangda Group Co., Ltd.
3. Entrusted cash capital management
(1) Wealth management
√ Applicable □ Inapplicable
Wealth management during the reporting period
In RMB10,000
Accrued impairment
amount of overdue
Due balance to be
Type Source of fund Amount Undue balance unrecovered
recovered
financial
management
Bank financial
Self-owned fund 78,468.29 2,513.52 0 0
products
Total 78,468.29 2,513.52 0 0
Details of high-risk entrusted financial management with significant single amount or low security and poor liquidity
□ Applicable √ Inapplicable
Entrusted financial management expected to fail to recover the principal or likely result in impairment
□ Applicable √ Inapplicable
(2) Trusted loans
□ Applicable √ Inapplicable
The Company borrowed no trust loan in the report period.
4. Other significant contract
□ Applicable √ Inapplicable
The Company entered into no other significant contract in the report.
XVI. Other material events
√ Applicable □ Inapplicable
1. From July 23, 2020 to September 22, 2020, the Company completed the repurchase of some domestic listed
foreign shares (B shares) in 2020 through centralized bidding, and the cumulative number of B shares with unlimited
sales conditions was 14,404,724. On April 23, 2021, the Company completed the share repurchase cancellation
procedures in Shenzhen Branch of China Securities Depository and Clearing Corporation Limited, and the B shares
with unlimited sales conditions were reduced by 14,404,724. The total share capital of the Company was reduced
from 1,088,278,951 shares to 1,073,874,227 shares. The Company disclosed the Announcement on the Completion of
Share Repurchase Cancellation and Share Change on April 27, 2021.
2. The Company signed the investment framework agreement with the People's Government of Xiegang Town,
Dongguan City, Guangdong Province on May 21, 2021. The Company plans to invest in the development of Fangda Bay
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Annual Report 2021 of China Fangda Group Co., Ltd.
District Headquarters project in Xiegang Town, Dongguan City, Guangdong Province. The Company disclosed the
announcement on signing the project investment framework agreement on May 22, 2021 and communicated and negotiated
on specific matters. After careful consideration and comprehensive evaluation, based on commercial considerations,
the Company decided not to promote the signing of formal agreements with Xiegang town government. Subsequently,
the Company will continue to look for investment and construction sites to promote the sustainable and healthy
development of the company and enhance the comprehensive competitiveness of the Company.
3. According to the Company's development strategy and in combination with the development needs of the holding
subsidiary Fangda Zhichuang Technology rail transit PSD system industry, the board of directors of the Company
agreed to plan the domestic listing of Fangda Zhichuang Technology, and authorized the Company and Fangda Zhichuang
Technology management to start the planning of the domestic listing of Fangda Zhichuang Technology. On May 14,
2021, the company disclosed the suggestive announcement on Authorizing the management of the Company to start
the planning of domestic listing of spin off holding subsidiaries. As of the disclosure date of this report,
Fangda Zhichuang Technology has completed the joint-stock transformation of the Company and has been renamed
"Fangda Zhiyuan Technology Co., Ltd.". Other planning work for the spin off and listing continues to be promoted,
and the company will timely fulfill its obligation of information disclosure according to the progress of the
project.
4. In order to promote the development of new energy photovoltaic industry, the Company signed the cooperation framework
agreement on Wan'an Fangda photovoltaic building integration (BIPV) and distributed photovoltaic power generation project with
the People's Government of Wan'an County, Jiangxi Province, to develop photovoltaic building integration (BIPV) and distributed
photovoltaic power generation projects within the agreed scope of Wan'an county. On October 25, 2021, the Company disclosed the
announcement on signing the cooperation framework agreement on Wan'an Fangda photovoltaic building integration (BIPV) and
distributed photovoltaic power generation project. As of the disclosure date of this report, the Company is actively discussing the
details of photovoltaic cooperation with relevant departments of Wan'an county government, implementing the framework agreement
signed with Wan'an County People's government, and actively carrying out photovoltaic industry business in other regions. The
Company will timely perform the obligation of information disclosure in accordance with the requirements of
relevant laws, regulations and normative documents.
The Company needs to comply with the disclosure requirements of the decoration and decoration industry in the
Guidelines for the Self-discipline and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry
Information Disclosure.
During the reporting period, the Company's relevant qualifications have not changed significantly, and the
validity period has not expired.
No. Qualification Valid period
1 Construction curtain wall designing class By Sunday, March 16, 2025
A
2 Construction curtain wall contracting By Saturday, December 31, 2022
class A
3 Construction mechanical and electric By Tuesday, February 25, 2025
equipment installation contracting class A
4 Construction decoration contracting class By Saturday, December 31, 2022
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Annual Report 2021 of China Fangda Group Co., Ltd.
B
5 Steel structure engineering contracting By Saturday, December 31, 2022
class B
6 City and road lighting engineering By Saturday, December 31, 2022
contracting class C
7 Design and construction of metal roof By Friday, January 12, 2024
(wall) surface of building
In the report period, the Company’s safety management is normal. The Company pays large attention to
employees’ safety awareness and capabilities of emergency processing. The Company has strengthened safety
production and investigation of safety risks. The Company has formulated safety management guidelines to guide
safety management. There were no significant safety accidents in the report period.
XVII. Material events of subsidiaries
□ Applicable √ Inapplicable
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Annual Report 2021 of China Fangda Group Co., Ltd.
Chapter VII Changes in Share Capital and Shareholders
I. Changes in shares
1. Changes in shares
In share
Before the change Change (+,-) After the change
Bon
Issued Transfer
us Proportio
Quantity Proportion new red from Others Subtotal Quantity
shar n
shares reserves
es
I. Shares with trade
2,302,093 0.21% 2,302,093 0.21%
restriction conditions
1. State-owned
shares
2. State-owned
legal person shares
3. Other domestic
2,302,093 0.21% 2,302,093 0.21%
shares
Including: Shares
held by domestic legal
persons
Domestic
2,302,093 0.21% 2,302,093 0.21%
natural person shares
4. Shares held by
foreign investors
Including: Shares
held by foreign legal
persons
Domestic
natural person shares
II. Unrestricted shares 1,085,976,858 99.79% -14,404,724 -14,404,724 1,071,572,134 99.79%
1. Common shares
677,413,379 62.25% 677,413,379 63.08%
in RMB
2. Foreign shares in
408,563,479 37.54% -14,404,724 -14,404,724 394,158,755 36.71%
domestic market
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Annual Report 2021 of China Fangda Group Co., Ltd.
3. Foreign shares in
overseas market
4. Others
III. Total of capital
1,088,278,951 100.00% -14,404,724 -14,404,724 1,073,874,227 100.00%
shares
Reasons
√ Applicable □ Inapplicable
In order to protect the Company's value and shareholders' rights and interests, the Company repurchased some domestic listed foreign
shares (B shares) by means of centralized competitive trading, and completed the share repurchase cancellation procedures in
Shenzhen Branch of China Securities Depository and Clearing Corporation Limited on April 23, 2021. The B shares of shares with
unlimited conditions were reduced by 14,404,724, and the total share capital of the Company was reduced from 1,088,278,951 to
1,073,874,227 shares.
Approval of the change
√ Applicable □ Inapplicable
The Company's repurchase of some domestic listed foreign shares (B shares) in 2020 was reviewed and approved at the second
meeting of the ninth board of directors and the 2020 annual general meeting of shareholders held by the Company on June 23, 2020
and April 12, 2021 respectively.
Share transfer
√ Applicable □ Inapplicable
The Company repurchased some 14,404,724 shares of domestically listed foreign shares (B shares) in 2020, and completed the share
repurchase and cancellation procedures at the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited on
April 23, 2021.
Impacts on financial indicators including basic and diluted earnings per share, net assets per share attributable to common
shareholders of the Company in the most recent year and period
□ Applicable √ Inapplicable
Others that need to be disclosed as required by the securities supervisor
□ Applicable √ Inapplicable
2. Changes in conditional shares
□ Applicable √ Inapplicable
II. Share placing and listing
1. Securities issuance (excluding preference shares) during the report period
□ Applicable √ Inapplicable
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Annual Report 2021 of China Fangda Group Co., Ltd.
2. Statement of changes in share number and shareholder structure, assets and liabilities structure
□ Applicable √ Inapplicable
3. Current employees’ shares
□ Applicable √ Inapplicable
III. Shareholders and the substantial controller of the Company
1. Shareholders and shareholding
In share
Total number of
Total number of shareholders of
Number of Number of
ordinary share preference shares
shareholders of shareholders of
shareholders at of which voting
common shares preferred stocks of
59,903 the end of the 57,298 0 rights resumed at 0
at the end of which voting rights
month before the the end of the
the report recovered in the
disclosure date of month before the
period report period
the annual report disclosure date of
the annual report
Shareholders holding 5% of the Company's shares or top-10 shareholders
Number of Amount of Pledge, marking or
Sharehold
shares held at Change in shares freezing
Nature of ing Conditional
Shareholder name the end of the the reporting without
shareholder percentag shares Quantit
reporting period sales Share status
e y
period restriction
Shenzhen Banglin
Domestic
Technologies
non-state legal 11.11% 119,332,846 1,025,300 0 119,332,846
Development Co.,
person
Ltd.
Shengjiu Foreign legal
10.04% 107,862,104 2,727,542 0 107,862,104
Investment Ltd. person
Domestic natural
Fang Wei 3.06% 32,908,178 2,585,741 0 32,908,178
person
Gong Qing Cheng
Shi Li He
Domestic
Investment
non-state legal 1.48% 15,860,609 0 0 15,860,609
Management
person
Partnership
Enterprise (limited
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Annual Report 2021 of China Fangda Group Co., Ltd.
partner)
VANGUARD
EMERGING
Foreign legal
MARKETS 0.59% 6,312,683 0 0 6,312,683
person
STOCK INDEX
FUND
VANGUARD
TOTAL
Foreign legal
INTERNATIONA 0.58% 6,247,740 0 0 6,247,740
person
L STOCK INDEX
FUND
Shenwan
Hongyuan Foreign legal
0.54% 5,781,300 -2,596 0 5,781,300
Securities (Hong person
Kong) Co., Ltd.
Domestic natural
Qu Chunlin 0.44% 4,737,100 -929,761 0 4,737,100
person
First Shanghai Foreign legal
0.37% 3,938,704 0 0 3,938,704
Securities Limited person
Shanghai Silver
Leaf Investment
Co., Ltd.-Silver
Leaf Quantitative Others 0.35% 3,755,500 0 0 3,755,500
Hedging Phase 1
Private Securities
Investment Fund
A strategic investor or ordinary legal
person becomes the Top10 shareholder None
due a stock issue.
Among the shareholders, Shenzhen Banglin Technology Development Co., Ltd. and
Shengjiu Investment Co., Ltd. are parties action-in-concert. Shenzhen Banglin Technology
Notes to top ten shareholder
Development Co., Ltd. and Gong Qing Cheng Shi Li He Investment Management
relationship or "action in concert"
Partnership Enterprise are related parties. The Company is not notified of other
action-in-concert or related parties among the other holders of current shares.
Description of the above shareholders
involved in entrusted / entrusted voting None
right and waiver of voting right
Special instructions on the existence of
special repurchase account among the None
top 10 shareholders
Top 10 holders of unconditional shares
83
Annual Report 2021 of China Fangda Group Co., Ltd.
Amount of shares without sales Category of shares
Shareholder name
restriction Category of shares Quantity
Shenzhen Banglin Technologies
119,332,846 RMB common shares 119,332,846
Development Co., Ltd.
Domestically listed
Shengjiu Investment Ltd. 107,862,104 107,862,104
foreign shares
Fang Wei 32,908,178 RMB common shares 32,908,178
Gong Qing Cheng Shi Li He Investment
Management Partnership Enterprise 15,860,609 RMB common shares 15,860,609
(limited partner)
VANGUARD EMERGING MARKETS Domestically listed
6,312,683 6,312,683
STOCK INDEX FUND foreign shares
VANGUARD TOTAL
Domestically listed
INTERNATIONAL STOCK INDEX 6,247,740 6,247,740
foreign shares
FUND
Shenwan Hongyuan Securities (Hong Domestically listed
5,781,300 5,781,300
Kong) Co., Ltd. foreign shares
Qu Chunlin 4,737,100 RMB common shares 4,737,100
Domestically listed
First Shanghai Securities Limited 3,938,704 3,938,704
foreign shares
Shanghai Silver Leaf Investment Co.,
Ltd.-Silver Leaf Quantitative Hedging
3,755,500 RMB common shares 3,755,500
Phase 1 Private Securities Investment
Fund
No action-in-concert or related parties Among the shareholders, Shenzhen Banglin Technology Development Co., Ltd. and
among the top10 unconditional Shengjiu Investment Co., Ltd. are parties action-in-concert. Shenzhen Banglin
shareholders and between the top10 Technology Development Co., Ltd. and Gong Qing Cheng Shi Li He Investment
unconditional shareholders and the top10 Management Partnership Enterprise are related parties. The Company is not notified of
shareholders other action-in-concert or related parties among the other holders of current shares.
Shanghai Yinye Investment Co., Ltd. - Yinye quantitative hedge phase 2 private
Top-10 common share shareholders
securities investment fund holds 3,755,500 shares of the company through the customer
participating in margin trade
credit transaction guarantee securities account of Xiangcai Securities Co., Ltd.
Agreed re-purchasing by the Company’s top 10 shareholders of common shares and top 10 shareholders of unconditional common
shares in the report period
□ Yes √ No
No agreed re-purchasing by the Company’s top 10 shareholders of common shares and top 10 shareholders of unconditional common
shares in the report period
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Annual Report 2021 of China Fangda Group Co., Ltd.
2. Profile of the controlling shareholders
Shareholder nature: natural person holding
Type of shareholder: legal person
Legal
Date of Organization
Name of controlling shareholder representative/re Main business
establishment code
sponsible person
Industrial investment, developing of
Shenzhen Banglin Technologies Thursday, June 7, 9144030072984 electronic products, technical
Chen Jinwu
Development Co., Ltd. 2001 00552 consulting, domestic commerce,
material trading
Stock ownership of other domestic
and overseas listed company
None
controlled or whose shares are held
by controlling shareholders
Changes in the controlling shareholder in the reporting period
□ Applicable √ Inapplicable
No change in the controlling shareholder in the report period
3. Actual controller and persons acting in concert
Nature of actual controller: domestic natural person
Type of actual controller: natural person
Relationship with the Right of residence in another
Name of substantial controller Nationality
actual controller country or region
Xiong Jianming Himself Chinese Yes
Job and position Chairman of the Board and president of the Company over the past 5 years
Profiles of domestic and overseas listed
The controller held no share in other listed companies in the last ten years.
companies in which the controller held shares
Change in the actual controller in the report period
□ Applicable √ Inapplicable
No change in the actual shareholder in the report period
7. Chart of the controlling relationship
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Annual Report 2021 of China Fangda Group Co., Ltd.
Controlling over the Company by the substantial controller through trust or other asset management
□ Applicable √ Inapplicable
4. The cumulative number of Pledged Shares of the Company's controlling shareholder or the largest
shareholder and its concerted actors accounts for 80% of the Company's shares
□ Applicable √ Inapplicable
5. Other legal person shareholders with over 10% of total shares
□ Applicable √ Inapplicable
6. Conditional decrease of shareholding by controlling shareholder, actual controller, reorganizer and
other entities
□ Applicable √ Inapplicable
IV. Specific implementation of share repurchase in the reporting period
Progress in the implementation of share repurchase
□ Applicable √ Inapplicable
Progress in the implementation of the reduction of shareholding shares by means of centralized bidding
□ Applicable √ Inapplicable
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Annual Report 2021 of China Fangda Group Co., Ltd.
Chapter VIII Preferred Shares
□ Applicable √ Inapplicable
The Company had no preferred share in the report period.
87
Annual Report 2021 of China Fangda Group Co., Ltd.
Chapter IX Information about the Company’s Securities
□ Applicable √ Inapplicable
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Annual Report 2021 of China Fangda Group Co., Ltd.
Chapter X Financial Statements
I. Auditor’s report
Type Standard opinion auditor’s report
Issued on Monday, March 28, 2022
Auditor RSM Thornton (limited liability partnership)
Report No. RSM[2022] No.361Z0068
CPA names Xie Peiren, Zeng Hui, Hu Gaosheng
Auditors’ Report
Auditors’ Report
RSM[2022] No.361Z0068
To the shareholders of China Fangda Group Co., Ltd.:
1. Auditors' Opinions
We have audited the financial statements of Fangda Group Co., Ltd. (hereinafter referred to as Fangda group
company), including the consolidated and parent company's balance sheet as of Friday, December 31, 2021, the
consolidated and parent company's income statement, consolidated and parent company's cash flow statement,
consolidated and parent company's statement of changes in owner's equity and notes to relevant financial
statements in 2021.
We believe that Fangda Group has been following with the Enterprise Accounting Standard in preparing of
the Financial Statements. The Financial Statements is reflecting, in all important aspects, the financial
situation of Fangda Group as of Friday, December 31, 2021, and the business performance and cash flow of year
2021.
2. Basis of the Opinions
We carried out the auditing works with compliance to Chinese CPA Auditing Standard, the"CPA's Responsibility
for Auditing Financial Statements" section of the audit report further elaborated our responsibilities under
these guidelines. In accordance with the Code of Ethics for Chinese Certified Public Accountants, we are
independent of Fangda Group and perform other professional ethics duties. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
3. Key Audit Matters
The key audit matters are the matters that we believe are most important for the audit of the current financial
statements based on professional judgment. The response to these matters is based on the overall audit of the
financial statements and the formation of an audit opinion. We do not comment on these matters separately.
(1) Income recognition
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Annual Report 2021 of China Fangda Group Co., Ltd.
For related information disclosure, please refer to Note III, 24, Note V, 46 and Note XIII, 2 of the financial
statements.
1. Description
In 2021, the operating revenue of Fangda Group is 3.558 billion yuan, of which the revenue of curtain walls
and metro platform screen door accounts for 87.67% of the total revenue of the Group.
Fangda Group's performance obligations related to the construction subcontracting contract include building
curtain wall and metro platform screen door. As the customer can control the commodity under construction in
the process of performance of Fangda group, the Company regards it as the performance obligation within a certain
period of time, and recognizes the revenue according to the performance progress. The Company shall determine
the performance schedule of services according to the input method. The performance schedule shall be determined
according to the proportion of the actual contract cost to the estimated total contract cost. Management needs
to make a reasonable estimate of the initial total contract revenue and total contract costs for the Engineering
contracting contract and continue to assess and revise it during the contract implementation process, which
involves significant accounting estimates of the management.
Therefore, we identify revenue recognition related to construction contracts as key audit matters.
2. Audit response
Our audit procedures for revenue recognition related to construction subcontracting contracts mainly
include:
(1) Understand and evaluate the design of internal control related to management contract and engineering
subcontracting contract budget and revenue recognition, and test the effectiveness of key control implementation.
(2) Obtained a major engineering subcontracting contract, verified the contract revenue, and reviewed key
contract terms. Check the engineering contracting contract and cost budget information on which management expects
total revenue and estimated total cost.
(3) Obtain the construction subcontracting contract account and project revenue and cost summary table,
carry out analytical review on the gross profit of the project, and recalculate the performance progress and
revenue in the construction subcontracting contract account to verify its accuracy.
(4) Select samples to check the project engineering details of the main project, subcontracted labor approval
forms, and the owner’s production value approval documents and records to verify the contract costs incurred.
(5) Select samples to check if the relevant contract costs are recorded in the appropriate accounting period.
(6) Select a sample to conduct a site inspection of the progress of the project image to verify the
reasonableness of the project's performance schedule.
(2) Measurement of fair value of investment real estate
For related information disclosure, please refer to Note III, 15, Note V, 16(2), Note V, 54 and Note IX
of the financial statements.
1. Description
As of Friday, December 31, 2021, the book balance of the investment real estate of Fangda group which adopts the fair value
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Annual Report 2021 of China Fangda Group Co., Ltd.
model for subsequent measurement is 5.755 billion yuan, accounting for 46.94% of the total assets. The income from changes in fair
value realized in the current period is 21 million yuan, which has a great impact on the financial indicators of the Group's
consolidated statements.
The management of Fangda Group annually employs a third-party assessment agency with relevant qualifications
to evaluate the fair value of the investment real estate. The evaluation adopts the market comparison method
and the income method to comprehensively analyze various factors that affect the real estate price of the appraisal
subject. The assessment of the fair value of investment real estate involves many estimates and assumptions,
such as the analysis of the economic environment and future trends of the real estate where the investment real
estate is located, discount rates, etc. The changes in estimates and assumptions will have big impacts on the
fair value of the investment real estate evaluated. Therefore, we identify the measurement of fair value of
investment real estate as a key audit matter.
2. Audit response
Our audit procedures for the measurement of fair value of investment real estate mainly include:
(1) Assess the competency, professional quality, independence and objectivity of third-party assessment
agencies employed by the management.
(2) Review the relevant considerations and objective evidence of the management's credit risk assessment
of accounts receivable and contract assets, and evaluate whether the management has properly identified the credit
risk characteristics of various accounts receivable.
(3) Review the measurement, presentation and disclosure of fair value of investment real estate in the
financial statements.
(III) Measurement of expected credit loss of accounts receivable and contract assets
For related information disclosure, please refer to Note III, 9, Note V, 5, Note V, 10, and Note V, 23
of the financial statements.
1. Description
As of December 31, 2021, the total amount of accounts receivable of the Company is 749 million yuan, the
provision for bad debts has been withdrawn is 192 million yuan, the total amount of contract assets of the Company
is 2.011 billion yuan, the provision for impairment has been withdrawn is 163 million yuan, and the total amount
of accounts receivable and contract assets accounts for 19.60% of the total assets. Due to the large amount of
accounts receivable and contract assets of Fangda group, the management needs to use important accounting
estimation and judgment when determining the expected recoverable amount of accounts receivable and contract
assets, and the expected credit loss of accounts receivable and contract assets is important for financial
statements. Therefore, we determine the measurement of expected credit loss of accounts receivable and contract
assets as the key audit accounting matters.
2. Audit response
(1) Understand and evaluate the effectiveness of internal control design related to the provision for bad
debts of accounts receivable and provision for impairment of contract assets of Fangda Group, and test the
effectiveness of key control operation.
(2) Examining the expected credit loss measurement model, assessing the rationality of the major assumptions
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and key parameters in the model and the appropriateness of the credit risk combination method. Sample the key
data of the expected credit loss model, and test the integrity and accuracy of the historical data used by the
management.
(3) Review the management's accrual process of bad debt provision for accounts receivable and contract
assets impairment provision, including: ① For the accounts receivable and contract assets that measure the
expected credit loss on the basis of portfolio, evaluate the rationality of the management's division of portfolio
according to the characteristics of credit risk; Check the measurement model of expected credit loss and evaluate
the rationality of major assumptions and key parameters in the model; Obtain the comparison table between the
aging of accounts receivable and the expected credit loss rate for the whole duration prepared by the management,
and test the accuracy and integrity of the data used by the management and whether the calculation of bad debt
reserves is accurate (2) for the accounts receivable and contract assets with single provision for impairment,
review the accuracy and rationality of the information and relevant assumptions used by the management in the
testing process, and check the provision for impairment for the accounts receivable and contract assets with
long accounting age, the accounts receivable and contract assets involving litigation matters.
(4) According to the characteristics and nature of customer transactions, select samples to implement the
accounts receivable confirmation procedure and check the collection after the period, and evaluate the rationality
of the provision for bad debts of accounts receivable.
4. Other information
The management of Fangda Group (hereinafter referred to as management) is responsible for other information.
The other information includes the information covered in Fangda Group's 2021 annual report, but does not include
the financial statements and our audit report.
Our audit opinions published in the financial statements do not cover other information and we do not publish
any form of assurance conclusion on other information.
In connection with our audit of the financial statements, our responsibility is to read other information.
In the process, we consider whether there is a material inconsistency or other material misstatement of other
information whether it is in the financial statements or what we have learned during the audit process.
Based on the work we have performed, if we determine that there is a material misstatement of other
information, we should report that fact. In this regard, we have nothing to report.
5. Executives’ responsibilities on the Financial Statements
(1) Preparing these financial statements according to the Accounting Standards for Business Enterprises
and presenting them fairly; (2) designing, implementing and maintaining necessary internal control to make sure
that these financial statements are free from material misstatement, whether due to fraud or error.
In the preparation of the financial statements, the management is responsible for assessing Fangda Group's
ability to continue as a going concern, disclosing issues related to going concern (if applicable), and applying
the going concern assumption unless management plans to liquidate Fangda Group, terminate operations or there
are no other realistic choices.
The management is responsible for overseeing the financial reporting process of Fangda Group.
6. Auditor's responsibility for auditing financial statements
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Annual Report 2021 of China Fangda Group Co., Ltd.
Our objective is to obtain reasonable assurance as to whether the entire financial statements are free
from material misstatement due to fraud or error and to issue an audit report containing audit opinions. Reasonable
assurance is a high level of assurance, but it does not guarantee that an audit performed in accordance with
auditing standards can always be discovered when a major misstatement exists. The report may be due to fraud
or mistakes, and if a reasonable expectation of misstatement alone or aggregated may affect the economic
decision-making made by users of financial statements based on the financial statements, the misstatement is
generally considered to be material.
In the process of conducting audit work in accordance with auditing standards, we use professional judgment
and maintain professional suspicion. At the same time, we also perform the following tasks:
(1) Identify and assess risks of material misstatement of financial statements due to fraud or errors,
design and implement audit procedures to address these risks, and obtain adequate and appropriate audit evidence
as a basis for issuing audit opinions. As fraud may involve collusion, forgery, willful omission,
misrepresentation or override of internal control, the risk of not discovering a material misstatement due to
fraud is higher than the risk of not discovering a material misstatement resulting from a mistake.
(2) Understand audit-related internal controls to design appropriate audit procedures.
(3) Evaluate the appropriateness of accounting policies adopted by the management and the reasonableness
of accounting estimates and related disclosures.
(4) Conclude on the appropriateness of management's use of continuing operations assumptions. At the same
time, based on the audit evidence obtained, it concludes that whether there are major uncertainties in the matters
or circumstances that may cause major doubts about the ability of the Company’s continuing operations. If we
conclude that there are significant uncertainties, the auditing standards require us to request the users of
the report to pay attention to the relevant disclosures in the financial statements in the audit report; if the
disclosure is not sufficient, we should publish non-unqualified opinions. Our conclusions are based on the
information available as of the date of the audit report. However, future events or circumstances may result
in Fangda Group's inability to continue operating.
(5) Evaluate the overall presentation, structure, and content of the financial statements and evaluate
whether the financial statements fairly reflect the relevant transactions and events.
(6) Obtain sufficient and appropriate audit evidence on the financial information of entity or business
activities in Fangda Group to express opinions on the financial statements. We are responsible for directing,
supervising and executing group audits and assume full responsibility for audit opinions.
We communicate with the governance team on planned audit scope, timing, and major audit findings, including
communication of the internal control deficiencies that we identified during the audit.
We also provide a statement to the management on compliance with ethical requirements related to independence,
and communicate with the management on all relationships and other matters that may reasonably be considered
to affect our independence, as well as related preventive measures (if applicable).
From the matters passed with the management, we determine which items are most important for the audit of the
financial statements of the current period and thus constitute the key audit matters. We describe these matters
in our audit report, unless laws and regulations prohibit the public disclosure of these matters, or in rare
cases, if it is reasonably expected that the negative consequences of communicating something in the audit report
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will outweigh the benefits in the public interest, we determine that such matter should not be communicated in
the audit report.
RSM China CPA:
(limited liability Xie Peiren (Project Partner)
partnership)
CPA:
Zeng Hui
Beijing, China CPA:
Hu Gaosheng
March 28, 2022
II. Financial statements
Unit for statements in notes to financial statements: RMB yuan
1. Consolidated Balance Sheet
Prepared by: China Fangda Group Co., Ltd.
Friday, December 31, 2021
In RMB
Item Friday, December 31, 2021 Thursday, December 31, 2020
Current asset:
Monetary capital 1,287,563,759.32 1,463,974,162.45
Settlement provision
Outgoing call loan
Transactional financial assets 25,135,241.89 14,382,896.04
Derivative financial assets 1,069,587.62 6,974,448.22
Notes receivable 166,377,880.01 207,165,063.97
Account receivable 556,453,824.20 616,960,252.54
Receivable financing 4,263,500.00 10,727,129.28
Prepayment 23,022,485.03 23,940,064.88
Insurance receivable
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Reinsurance receivable
Provisions of Reinsurance
contracts receivable
Other receivables 165,093,406.23 162,284,588.59
Including: interest receivable
Dividend receivable
Repurchasing of financial assets
Inventory 733,280,924.98 837,831,790.88
Contract assets 1,782,947,673.13 1,433,963,300.50
Assets held for sales
Non-current assets due in 1 year 141,681,778.35
Other current assets 264,786,506.29 233,395,117.10
Total current assets 5,009,994,788.70 5,153,280,592.80
Non-current assets:
Loan and advancement provided
Debt investment
Other debt investment
Long-term receivables
Long-term share equity investment 55,218,946.14 55,902,377.95
Investment in other equity tools 14,180,652.65 17,628,307.59
Other non-current financial assets 7,525,408.24 5,025,186.16
Investment real estate 5,765,352,393.13 5,634,648,416.52
Fixed assets 663,414,297.61 483,217,323.75
Construction in process 11,642,444.21 168,626,803.01
Productive biological assets
Gas & petrol
Use right assets 31,440,856.54
Intangible assets 75,199,712.83 77,201,610.87
R&D expense
Goodwill
Long-term amortizable expenses 5,388,770.22 4,581,487.32
Deferred income tax assets 214,123,733.00 186,689,823.51
Other non-current assets 407,856,515.39 104,821,461.55
Total of non-current assets 7,251,343,729.96 6,738,342,798.23
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Total of assets 12,261,338,518.66 11,891,623,391.03
Current liabilities
Short-term loans 1,287,474,398.65 1,048,250,327.62
Loans from Central Bank
Call loan received
Transactional financial liabilities
Derivative financial liabilities 11,871.20 915,234.93
Notes payable 849,445,299.09 866,224,515.42
Account payable 1,343,123,485.97 1,282,682,418.40
Prepayment received 1,280,482.93 1,544,655.62
Contract liabilities 180,186,877.15 265,487,113.12
Selling of repurchased financial
assets
Deposit received and held for
others
Entrusted trading of securities
Entrusted selling of securities
Employees' wage payable 69,071,013.95 60,894,196.78
Taxes payable 67,280,647.22 360,295,879.85
Other payables 126,903,098.08 153,635,067.86
Including: interest payable
Dividend payable 6,000,000.00
Fees and commissions payable
Reinsurance fee payable
Liabilities held for sales
Non-current liabilities due in 1
78,418,557.76 103,359,833.57
year
Other current liabilities 48,098,361.77 107,688,425.69
Total current liabilities 4,051,294,093.77 4,250,977,668.86
Non-current liabilities:
Insurance contract provision
Long-term loans 1,333,500,000.00 1,099,411,462.35
Bond payable
Including: preferred stock
Perpetual bond
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Lease liabilities 19,152,093.31
Long-term payable 183,640,219.18
Long-term employees' wage
payable
Anticipated liabilities 6,347,809.40 33,425,500.13
Deferred earning 9,566,525.60 9,168,492.17
Deferred income tax liabilities 1,066,631,858.80 1,038,091,182.43
Other non-current liabilities
Total of non-current liabilities 2,618,838,506.29 2,180,096,637.08
Total liabilities 6,670,132,600.06 6,431,074,305.94
Owner's equity:
Share capital 1,073,874,227.00 1,088,278,951.00
Other equity tools
Including: preferred stock
Perpetual bond
Capital reserves 11,459,588.40 20,459,588.40
Less: Shares in stock 42,748,530.12
Other miscellaneous income 35,325,871.78 2,078,167.63
Special reserves
Surplus reserve 79,324,940.43 106,783,436.96
Common risk provisions
Retained profit 4,324,055,259.33 4,217,843,325.77
Total of owner's equity belong to the
5,524,039,886.94 5,392,694,939.64
parent company
Minor shareholders' equity 67,166,031.66 67,854,145.45
Total of owners' equity 5,591,205,918.60 5,460,549,085.09
Total of liabilities and owner's interest 12,261,338,518.66 11,891,623,391.03
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Wu Bohua
2. Balance Sheet of the Parent Company
In RMB
Item Friday, December 31, 2021 Thursday, December 31, 2020
Current asset:
Monetary capital 111,848,536.84 204,828,995.78
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Transactional financial assets
Derivative financial assets
Notes receivable
Account receivable 585,936.30 885,849.08
Receivable financing
Prepayment 212,807.30 1,323,361.34
Other receivables 1,276,731,665.95 1,156,802,204.91
Including: interest receivable
Dividend receivable
Inventory
Contract assets
Assets held for sales
Non-current assets due in 1 year
Other current assets 1,460,846.55 1,071,138.13
Total current assets 1,390,839,792.94 1,364,911,549.24
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term share equity investment 1,196,831,253.00 1,196,831,253.00
Investment in other equity tools 14,180,652.65 16,392,331.44
Other non-current financial assets 30,000,001.00 30,000,001.00
Investment real estate 329,471,982.00 334,498,436.00
Fixed assets 71,830,252.61 65,157,481.98
Construction in process
Productive biological assets
Gas & petrol
Use right assets 17,224,771.47
Intangible assets 1,219,737.85 1,521,975.72
R&D expense
Goodwill
Long-term amortizable expenses 218,563.44 687,202.16
Deferred income tax assets 27,079,997.63 26,592,617.26
Other non-current assets
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Annual Report 2021 of China Fangda Group Co., Ltd.
Total of non-current assets 1,688,057,211.65 1,671,681,298.56
Total of assets 3,078,897,004.59 3,036,592,847.80
Current liabilities
Short-term loans 300,351,666.67 491,503,263.89
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Account payable 606,941.85 606,941.85
Prepayment received 858,019.63 927,674.32
Contract liabilities
Employees' wage payable 3,909,857.23 3,440,073.04
Taxes payable 3,447,040.12 2,993,196.12
Other payables 233,531,740.37 28,068,648.70
Including: interest payable
Dividend payable
Liabilities held for sales
Non-current liabilities due in 1
4,264,397.66
year
Other current liabilities
Total current liabilities 546,969,663.53 527,539,797.92
Non-current liabilities:
Long-term loans
Bond payable
Including: preferred stock
Perpetual bond
Lease liabilities 13,560,947.50
Long-term payable
Long-term employees' wage
payable
Anticipated liabilities
Deferred earning
Deferred income tax liabilities 74,447,416.01 73,837,511.85
Other non-current liabilities
Total of non-current liabilities 88,008,363.51 73,837,511.85
Total liabilities 634,978,027.04 601,377,309.77
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Owner's equity:
Share capital 1,073,874,227.00 1,088,278,951.00
Other equity tools
Including: preferred stock
Perpetual bond
Capital reserves 360,835.52 360,835.52
Less: Shares in stock 42,748,530.12
Other miscellaneous income -520,786.11 -371,129.71
Special reserves
Surplus reserve 79,324,940.43 106,783,436.96
Retained profit 1,290,879,760.71 1,282,911,974.38
Total of owners' equity 2,443,918,977.55 2,435,215,538.03
Total of liabilities and owner's interest 3,078,897,004.59 3,036,592,847.80
3. Consolidated Income Statement
In RMB
Item 2021 2020
1. Total revenue 3,557,724,397.54 3,000,191,773.63
Incl. Business income 3,557,724,397.54 3,000,191,773.63
Interest income
Insurance fee earned
Fee and commission
received
2. Total business cost 3,318,923,983.34 2,608,226,478.75
Incl. Business cost 2,761,300,557.48 2,416,574,885.32
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net insurance policy
responsibility contract reserves provided
Insurance policy dividend
paid
Reinsurance expenses
Taxes and surcharges 72,326,973.99 -222,120,890.04
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Annual Report 2021 of China Fangda Group Co., Ltd.
Sales expense 59,877,614.73 39,801,205.56
Administrative expense 169,443,658.83 143,365,324.03
R&D cost 152,973,582.38 143,592,870.45
Financial expenses 103,001,595.93 87,013,083.43
Including: interest cost 101,722,768.10 84,492,438.91
Interest income 16,575,629.28 14,660,320.28
Add: other gains 14,032,939.09 15,626,450.81
Investment gains (―-‖ for loss) -1,459,334.05 1,416,240.16
Incl. Investment gains from
-683,431.81 -1,319,862.88
affiliates and joint ventures
Financial assets
-6,336,161.86 -6,148,967.92
derecognised as a result of amortized cost
Exchange gains ("-" for loss)
Net open hedge gains (―-‖ for
loss)
Gains from change of fair value
23,422,035.73 19,268,515.74
(―-― for loss)
Credit impairment ("-" for loss) -7,923,995.43 29,697,546.57
Investment impairment loss
7,181,339.41 53,075,851.07
("-" for loss)
Investment gains ("-" for loss) -2,291,048.05 -252,262.23
3. Operational profit ("-" for loss) 271,762,350.90 510,797,637.00
Plus: non-operational income 2,209,180.56 522,505.00
Less: non-operational expenditure 6,087,375.71 35,564,536.75
4. Gross profit ("-" for loss) 267,884,155.75 475,755,605.25
Less: Income tax expenses 41,085,548.73 86,272,568.27
5. Net profit ("-" for net loss) 226,798,607.02 389,483,036.98
(1) By operating consistency
1. Net profit from continuous
226,798,607.02 389,483,036.98
operation ("-" for net loss)
2. Net profit from discontinuous
operation ("-" for net loss)
(2) By ownership
1. Net profit attributable to the
222,168,142.53 389,344,290.74
shareholders of the parent company
2. Minor shareholders’ equity 4,630,464.49 138,746.24
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6. After-tax net amount of other misc.
33,206,426.49 2,553,576.88
incomes
After-tax net amount of other misc.
33,247,704.15 2,553,576.88
incomes attributed to parent's owner
(1) Other misc. incomes that cannot
-2,894,735.24 -2,478,954.16
be re-classified into gain and loss
1. Re-measure the change in
the defined benefit plan
2. Other comprehensive
income that cannot be transferred to
profit or loss under the equity method
3. Fair value change of
-2,894,735.24 -2,478,954.16
investment in other equity tools
4. Fair value change of the
Company's credit risk
5. Others
(2) Other misc. incomes that will be
36,142,439.39 5,032,531.04
re-classified into gain and loss
1. Other comprehensive
income that can be transferred to profit or
loss under the equity method
2. Fair value change of other
debt investment
3. Gains and losses from
changes in fair value of available-for-sale
financial assets
4. Other credit investment
credit impairment provisions
5. Cash flow hedge reserve -4,224,144.67 5,232,583.76
6. Translation difference of
-1,233,457.89 -200,052.72
foreign exchange statement
7. Others 41,600,041.95
After-tax net of other misc. income
-41,277.66
attributed to minority shareholders
7. Total of misc. incomes 260,005,033.51 392,036,613.86
Total of misc. incomes attributable
255,415,846.68 391,897,867.62
to the owners of the parent company
Total misc gains attributable to the 4,589,186.83 138,746.24
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minor shareholders
8. Earnings per share:
(1) Basic earnings per share 0.21 0.35
(2) Diluted earnings per share 0.21 0.35
Net profit contributed by entities merged under common control in the report period was RMB18,912.61, net profit realized by
parties merged during the previous period is RMB7,705,820.11.
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Wu Bohua
4. Income Statement of the Parent Company
In RMB
Item 2021 2020
1. Turnover 24,953,602.85 24,471,432.70
Less: Operation cost 460,120.74 549,538.73
Taxes and surcharges 1,324,210.97 1,160,449.37
Sales expense
Administrative expense 32,607,874.44 25,339,223.31
R&D cost
Financial expenses 14,039,379.48 25,294,329.52
Including: interest cost 13,931,266.37 25,864,986.10
Interest income 695,036.74 2,892,457.34
Add: other gains 97,873.78 678,793.43
Investment gains (―-‖ for loss) 33,994,681.44 138,217,642.91
Incl. Investment gains from
affiliates and joint ventures
Financial assets
derecognised as a result of amortized
cost ("-" for loss)
Net open hedge gains (―-‖ for
loss)
Gains from change of fair
1,743,238.00 39,143,434.00
value (―-― for loss)
Credit impairment ("-" for
-3,072.04 -3,642.40
loss)
Investment impairment loss
("-" for loss)
Investment gains ("-" for loss) 2,654.87 -2,253.68
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2. Operational profit (―-‖ for loss) 12,357,393.27 150,161,866.03
Plus: non-operational income 32,837.61 51,867.27
Less: non-operational expenditure 110,348.37 2,592.22
3. Gross profit ("-" for loss) 12,279,882.51 150,211,141.08
Less: Income tax expenses 3,426,786.59 37,629,582.04
4. Net profit (―-‖ for net loss) 8,853,095.92 112,581,559.04
(1) Net profit from continuous
8,853,095.92 112,581,559.04
operation ("-" for net loss)
(2) Net profit from discontinuous
operation ("-" for net loss)
5. After-tax net amount of other misc.
-149,656.40 -1,658,759.09
incomes
(1) Other misc. incomes that
cannot be re-classified into gain and -1,658,759.09 -1,658,759.09
loss
1. Re-measure the change
in the defined benefit plan
2. Other comprehensive
income that cannot be transferred to
profit or loss under the equity method
3. Fair value change of
-1,658,759.09 -1,658,759.09
investment in other equity tools
4. Fair value change of the
Company's credit risk
5. Others
(2) Other misc. incomes that will
1,509,102.69
be re-classified into gain and loss
1. Other comprehensive
income that can be transferred to profit
or loss under the equity method
2. Fair value change of
other debt investment
3. Gains and losses from
changes in fair value of
available-for-sale financial assets
4. Other credit investment
credit impairment provisions
5. Cash flow hedge reserve
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6. Translation difference of
foreign exchange statement
7. Others 1,509,102.69
6. Total of misc. incomes 8,703,439.52 110,922,799.95
7. Earnings per share:
(1) Basic earnings per share
(2) Diluted earnings per share
5. Consolidated Cash Flow Statement
In RMB
Item 2021 2020
1. Net cash flow from business operations:
Cash received from sales of products and 3,472,283,389.16 3,388,618,864.67
providing of services
Net increase of customer deposits and capital kept
for brother company
Net increase of loans from central bank
Net increase of inter-bank loans from other
financial bodies
Cash received against original insurance contract
Net cash received from reinsurance business
Net increase of client deposit and investment
Cash received as interest, processing fee, and
commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Net cash received from trading securities
Tax refunded 23,051,730.15 19,611,621.78
Other cash received from business operation 120,052,421.59 170,258,854.96
Sub-total of cash inflow from business operations 3,615,387,540.90 3,578,489,341.41
Cash paid for purchasing products and services 2,549,580,998.25 2,356,389,232.50
Net increase of client trade and advance
Net increase of savings in central bank and brother
company
Cash paid for original contract claim
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Net increase in funds dismantled
Cash paid for interest, processing fee and
commission
Cash paid for policy dividend
Cash paid to and for the staff 393,791,110.72 327,234,573.88
Taxes paid 518,942,250.11 169,689,261.48
Other cash paid for business activities 216,498,478.11 170,208,324.59
Sub-total of cash outflow from business operations 3,678,812,837.19 3,023,521,392.45
Cash flow generated by business operations, net -63,425,296.29 554,967,948.96
2. Cash flow generated by investment:
Cash received from investment recovery 2,569,989,730.43 9,142,420,331.13
Cash received as investment profit 5,258,238.74 16,736,972.11
Net cash retrieved from disposal of fixed assets, 3,744,251.59 26,937.09
intangible assets, and other long-term assets
Net cash received from disposal of subsidiaries or
other operational units
Other investment-related cash received
Sub-total of cash inflow generated from investment 2,578,992,220.76 9,159,184,240.33
Cash paid for construction of fixed assets, 114,032,878.10 124,957,960.11
intangible assets and other long-term assets
Cash paid as investment 2,581,410,000.00 8,907,691,857.72
Net increase of loan against pledge
Net cash paid for acquiring subsidiaries and other
operational units
Other cash paid for investment 50,000.00 135,741.00
Subtotal of cash outflows 2,695,492,878.10 9,032,785,558.83
Cash flow generated by investment activities, net -116,500,657.34 126,398,681.50
3. Cash flow generated by financing activities:
Cash received from investment 1,200,000.00
Incl. Cash received from investment attracted by 1,200,000.00
subsidiaries from minority shareholders
Cash received from borrowed loans 2,185,667,296.03 2,746,860,091.27
Other cash received from financing activities 175,000,000.00
Subtotal of cash inflow from financing activities 2,360,667,296.03 2,748,060,091.27
Cash paid to repay debts 1,712,441,117.35 2,689,787,953.39
Cash paid as dividend, profit, or interests 131,745,861.24 176,293,954.61
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Annual Report 2021 of China Fangda Group Co., Ltd.
Incl. Dividend and profit paid by subsidiaries to 4,560,100.00 90,000.00
minority shareholders
Other cash paid for financing activities 467,260,641.72 264,136,912.25
Subtotal of cash outflow from financing activities 2,311,447,620.31 3,130,218,820.25
Net cash flow generated by financing activities 49,219,675.72 -382,158,728.98
4. Influence of exchange rate changes on cash and cash -5,429,180.24 -1,754,853.93
equivalents
5. Net increase in cash and cash equivalents -136,135,458.15 297,453,047.55
Plus: Balance of cash and cash equivalents at the 1,028,386,529.74 730,933,482.19
beginning of term
6. Balance of cash and cash equivalents at the end of 892,251,071.59 1,028,386,529.74
the period
6. Cash Flow Statement of the Parent Company
In RMB
Item 2021 2020
1. Net cash flow from business
operations:
Cash received from sales of
22,551,848.92 25,311,576.38
products and providing of services
Tax refunded 232,652.87
Other cash received from business
4,603,033,499.14 5,923,588,766.78
operation
Sub-total of cash inflow from business
4,625,585,348.06 5,949,132,996.03
operations
Cash paid for purchasing products
1,432,078.40 1,296,998.99
and services
Cash paid to and for the staff 19,382,565.12 17,120,262.06
Taxes paid 5,394,999.41 9,529,518.44
Other cash paid for business
4,519,631,300.00 5,193,502,562.12
activities
Sub-total of cash outflow from business
4,545,840,942.93 5,221,449,341.61
operations
Cash flow generated by business
79,744,405.13 727,683,654.42
operations, net
2. Cash flow generated by investment:
Cash received from investment 476,800,000.00 3,561,034,532.05
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Annual Report 2021 of China Fangda Group Co., Ltd.
recovery
Cash received as investment profit 33,994,681.44 138,917,642.91
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 29,891.50 6,235.50
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash
received
Sub-total of cash inflow generated from
510,824,572.94 3,699,958,410.46
investment
Cash paid for construction of fixed
assets, intangible assets and other 310,178.66 58,173.88
long-term assets
Cash paid as investment 476,800,000.00 3,775,526,290.70
Net cash paid for acquiring
subsidiaries and other operational units
Other cash paid for investment
Subtotal of cash outflows 477,110,178.66 3,775,584,464.58
Cash flow generated by investment
33,714,394.28 -75,626,054.12
activities, net
3. Cash flow generated by financing
activities:
Cash received from investment
Cash received from borrowed
300,090,000.00 690,000,000.00
loans
Other cash received from financing
activities
Subtotal of cash inflow from financing
300,090,000.00 690,000,000.00
activities
Cash paid to repay debts 490,090,000.00 1,090,000,000.00
Cash paid as dividend, profit, or
16,439,258.35 80,238,023.19
interests
Other cash paid for financing
142,820,271.29
activities
Subtotal of cash outflow from financing
506,529,258.35 1,313,058,294.48
activities
Net cash flow generated by financing -206,439,258.35 -623,058,294.48
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Annual Report 2021 of China Fangda Group Co., Ltd.
activities
4. Influence of exchange rate changes
237,736.33
on cash and cash equivalents
5. Net increase in cash and cash
-92,980,458.94 29,237,042.15
equivalents
Plus: Balance of cash and cash
204,578,995.78 175,341,953.63
equivalents at the beginning of term
6. Balance of cash and cash equivalents
111,598,536.84 204,578,995.78
at the end of the period
7. Statement of Change in Owners’ Equity (Consolidated)
Amount of the Current Term
In RMB
Item 2021
Owners' Equity Attributable to the Parent Company Min Tota
or l of
Sha Other equity Capi Less Othe Spec Surp Com Retain Ot Subt
shar own
re tools tal : r ial lus mon ed her otal
ehol ers'
cap reser Shar misc reser reser risk profit s
Pre Per Ot
ders' equit
ital fer pet her ves es in ellan ves ve prov
equit y
red ual s stoc eous ision
y
sha bo k inco s
re nd me
1. Balance at 1,0 11,4 42,7 2,07 106, 4,215, 5,38 66,5 5,44
the end of last 88, 59,5 48,5 8,16 783, 005,54 0,85 38,8 7,39
year 278 88.4 30.1 7.63 436. 1.52 7,15 36.0 5,99
,95 0 2 96 5.39 9 1.48
1.0
0
Plus: Changes
in accounting
policies
Correction of
previous
errors
Consolidation 9,00 2,837, 11,8 1,31 13,1
of entities 0,00 784.25 37,7 5,30 53,0
under 0.00 84.2 9.36 93.6
common 5 1
control
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Annual Report 2021 of China Fangda Group Co., Ltd.
Others
2. Balance at 1,0 20,4 42,7 2,07 106, 4,217, 5,39 67,8 5,46
the beginning 88, 59,5 48,5 8,16 783, 843,32 2,69 54,1 0,54
of current 278 88.4 30.1 7.63 436. 5.77 4,93 45.4 9,08
year ,95 0 2 96 9.64 5 5.09
1.0
0
3. Change -14 -9,0 -42, 33,2
amount in ,40 00,0 748, 47,7 -27, 106,21 131, -688 130,
the current 4,7 00.0 530. 04.1 458, 1,933. 344, ,113. 656,
period 24. 0 12 5 496. 56 947. 79 833.
(―-― for 00 53 30 51
decrease)
(1) Total of 33,2
misc. incomes 47,7 222,16 255, 4,58 260,
04.1 8,142. 415, 9,18 005,
5 53 846. 6.83 033.
68 51
(2) -14 -9,0 -42,
Investment or ,40 00,0 748, -28, -115,0 -124 -1,3 -125
decreasing of 4,7 00.0 530. 343, 70,899 ,070, 17,2 ,388,
capital by 24. 0 12 806. .38 899. 00.6 100.
owners 00 12 38 2 00
1. Common -14 -42,
shares ,40 748, -28, - - - -
invested by 4,7 530. 343,
owners 24. 12 806.
00 12
2. Capital
contributed - -
by other
equity
instrument
holders
3. Amount of
shares paid - -
and accounted
as owners'
equity
4. Others -9,0
00,0 - -115,0 -124 -1,3 -125
00.0 70,899 ,070, 17,2 ,388,
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Annual Report 2021 of China Fangda Group Co., Ltd.
0 .38 899. 00.6 100.
38 2 00
(3) Profit
allotment 885, -885,3 - -3,9 -3,9
309. 09.59 60,1 60,1
59 00.0 00.0
0 0
1. Provision
of surplus 885, -885,3
reserves 309. 09.59
59
2. Common
risk provision
3.
Distribution - -3,9 -3,9
to owners (or 60,1 60,1
shareholders) 00.0 00.0
0 0
4. Others
(4) Internal
carry-over of
owners'
equity
1.
Capitalizing
of capital
reserves (or
share capital)
2.
Capitalizing
of surplus
reserves (or
share capital)
3. Surplus
reserves used
to cover
losses
4. Retained
gain
transferred
due to change
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Annual Report 2021 of China Fangda Group Co., Ltd.
in set benefit
program
5. Other
miscellaneous
income
6. Others
(5) Special
reserves
1. Provided
this year
2. Used this
period
(6) Others
4. Balance at 1,0 11,4 35,3
the end of this 73, 59,5 25,8 79,3 4,324, 5,52 67,1 5,59
period 874 88.4 71.7 24,9 055,25 4,03 66,0 1,20
,22 0 8 40.4 9.33 9,88 31.6 5,91
7.0 3 6.94 6 8.60
0
Amount of the Previous Term
In RMB
2020
Owners' Equity Attributable to the Parent Company
Other equity tools Other Minor
Less: Specia Comm Total of
Item Share Capital miscell Surplu Retain shareho
Shares l on risk Subtot owners'
Prefe Perp lders'
capita Other reserve aneous s ed Others
in reserve provisi al equity
rred etual equity
l s s incom reserve profit
share bond stock s ons
e
1,123
1. Balance at 159,80 3,898, 5,182, 5,231,2
,384, 1,454, -475,4 48,410,
the end of last 5,930. 626,17 795,07 05,089.
189.0 191.59 09.25 009.60
year 34 7.99 9.67 27
0
Plus:
Changes in
accounting
policies
Correction of
previous errors
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Annual Report 2021 of China Fangda Group Co., Ltd.
Consolidation 10,342 20,242
9,900, 204,472 20,447,
of entities ,800.7 ,800.7
000.00 .73 273.50
under common 7 7
control
Others
1,123
2. Balance at 11,354 159,80 3,908, 5,203, 5,251,6
,384, -475,4 48,614,
the beginning ,191.5 5,930. 968,97 037,88 52,362.
189.0 09.25 482.33
of current year 9 34 8.76 0.44 77
0
3. Change
amount in the -35,1 42,748 -53,02 308,87 189,65
9,105, 2,553, 19,239, 208,896
current period 05,23 ,530.1 2,493. 4,347. 7,059.
396.81 576.88 663.12 ,722.32
(―-― for 8.00 2 38 01 20
decrease)
389,34 391,89
(1) Total of 2,553, 138,746 392,036
4,290. 7,867.
misc. incomes 576.88 .24 ,613.86
74 62
(2) Investment
-35,1 42,748 -64,28 -143,5 -134,68
or decreasing -900,0 -487,8 8,837,8
05,23 ,530.1 0,649. 22,257 4,417.4
of capital by 00.00 40.28 40.28
8.00 2 28 .68 0
owners
1. Common -35,1 42,748 -64,28 -143,5 -134,68
-900,0 -487,8 8,837,8
shares invested 05,23 ,530.1 0,649. 22,257 4,417.4
00.00 40.28 40.28
by owners 8.00 2 28 .68 0
2. Capital
contributed by
other equity
instrument
holders
3. Amount of
shares paid and
accounted as
owners' equity
4. Others
11,258 -79,98 -68,72
(3) Profit -690,00 -69,413
,155.9 2,103. 3,947.
allotment 0.00 ,947.55
0 45 55
1. Provision of 11,258 -11,25
surplus reserves ,155.9 8,155.
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Annual Report 2021 of China Fangda Group Co., Ltd.
0 90
2. Common
risk provision
3. Distribution -68,72 -68,72
-690,00 -69,413
to owners (or 3,947. 3,947.
0.00 ,947.55
shareholders) 55 55
4. Others
(4) Internal
carry-over of
owners' equity
1. Capitalizing
of capital
reserves (or
share capital)
2. Capitalizing
of surplus
reserves (or
share capital)
3. Surplus
reserves used to
cover losses
4. Retained
gain transferred
due to change
in set benefit
program
5. Other
miscellaneous
income
6. Others
(5) Special
reserves
1. Provided this
year
2. Used this
period
10,005 10,005
10,953, 20,958,
(6) Others ,396.8 ,396.8
076.60 473.41
1 1
4. Balance at 1,088 20,459 42,748 2,078, 106,78 4,217, 5,392, 67,854, 5,460,5
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Annual Report 2021 of China Fangda Group Co., Ltd.
the end of this ,278, ,588.4 ,530.1 167.63 3,436. 843,32 694,93 145.45 49,085.
period 951.0 0 2 96 5.77 9.64 09
0
8. Statement of Change in Owners’ Equity (Parent Company)
Amount of the Current Term
In RMB
2021
Other equity tools Other
Less: Total of
Item Share Preferr Perpet Capital miscella Special Surplus Retaine
Shares in Others owners'
capital ed ual Others reserves neous reserves reserve d profit
stock equity
share bond income
1,088,2 1,282,9
1. Balance at the 360,835. 42,748,5 -371,129 106,783, 2,435,215,
78,951. 11,974.
end of last year 52 30.12 .71 436.96 538.03
00 38
Plus:
Changes in
accounting
policies
Correction of
previous errors
Others
2. Balance at the 1,088,2 1,282,9
360,835. 42,748,5 -371,129 106,783, 2,435,215,
beginning of 78,951. 11,974.
52 30.12 .71 436.96 538.03
current year 00 38
3. Change
amount in the
-14,404 -42,748, -149,656 -27,458, 7,967,7 8,703,439.
current period
,724.00 530.12 .40 496.53 86.33 52
(―-― for
decrease)
(1) Total of misc. -149,656 8,853,0 8,703,439.
incomes .40 95.92 52
(2) Investment or
decreasing of -14,404 -42,748, -28,343,
capital by ,724.00 530.12 806.12
owners
1. Common -14,404 -42,748, -28,343,
shares invested ,724.00 530.12 806.12
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Annual Report 2021 of China Fangda Group Co., Ltd.
by owners
2. Capital
contributed by
other equity
instrument
holders
3. Amount of
shares paid and
accounted as
owners' equity
4. Others
(3) Profit 885,309. -885,30
allotment 59 9.59
1. Provision of 885,309. -885,30
surplus reserves 59 9.59
2. Distribution to
owners (or
shareholders)
3. Others
(4) Internal
carry-over of
owners' equity
1. Capitalizing
of capital
reserves (or
share capital)
2. Capitalizing
of surplus
reserves (or
share capital)
3. Surplus
reserves used to
cover losses
4. Retained gain
transferred due
to change in set
benefit program
5. Other
miscellaneous
income
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Annual Report 2021 of China Fangda Group Co., Ltd.
6. Others
(5) Special
reserves
1. Provided this
year
2. Used this
period
(6) Others
4. Balance at the 1,073,8 1,290,8
360,835. -520,786 79,324,9 2,443,918,
end of this 74,227. 79,760.
52 .11 40.43 977.55
period 00 71
Amount of the Previous Term
In RMB
2020
Other equity tools Other
Less: Total of
Item Share Preferr Perpet Capital miscella Special Surplus Retained
Shares Others owners'
capital ed ual Others reserves neous reserves reserve profit
in stock equity
share bond income
1. Balance at 1,123,
360,835 1,287,6 159,805 1,236,002 2,520,841,1
the end of last 384,18
.52 29.38 ,930.34 ,518.79 03.03
year 9.00
Plus:
Changes in
accounting
policies
Correction of
previous errors
Others
2. Balance at 1,123,
360,835 1,287,6 159,805 1,236,002 2,520,841,1
the beginning 384,18
.52 29.38 ,930.34 ,518.79 03.03
of current year 9.00
3. Change
amount in the -35,10
42,748,5 -1,658,7 -53,022, 46,909,45 -85,625,565
current period 5,238.
30.12 59.09 493.38 5.59 .00
(―-― for 00
decrease)
(1) Total of -1,658,7 112,581,5 110,922,79
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Annual Report 2021 of China Fangda Group Co., Ltd.
misc. incomes 59.09 59.04 9.95
(2) Investment
-35,10
or decreasing of 42,748,5 -64,280, -142,134,41
5,238.
capital by 30.12 649.28 7.40
00
owners
1. Common -35,10
42,748,5 -64,280, -142,134,41
shares invested 5,238.
30.12 649.28 7.40
by owners 00
2. Capital
contributed by
other equity
instrument
holders
3. Amount of
shares paid and
accounted as
owners' equity
4. Others
(3) Profit 11,258, -65,672,1 -54,413,947
allotment 155.90 03.45 .55
1. Provision of 11,258, -11,258,1
surplus reserves 155.90 55.90
2. Distribution
-54,413,9 -54,413,947
to owners (or
47.55 .55
shareholders)
3. Others
(4) Internal
carry-over of
owners' equity
1. Capitalizing
of capital
reserves (or
share capital)
2. Capitalizing
of surplus
reserves (or
share capital)
3. Surplus
reserves used to
cover losses
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Annual Report 2021 of China Fangda Group Co., Ltd.
4. Retained gain
transferred due
to change in set
benefit program
5. Other
miscellaneous
income
6. Others
(5) Special
reserves
1. Provided this
year
2. Used this
period
(6) Others
4. Balance at 1,088,
360,835 42,748,5 -371,12 106,783 1,282,911 2,435,215,5
the end of this 278,95
.52 30.12 9.71 ,436.96 ,974.38 38.03
period 1.00
III. General Information
1. LITITONG's Profile
China Fangda Group Co., Ltd. (hereinafter referred to as "the Company") was approved in October 1995 by the General Office
of the Shenzhen Municipal People's Government with the letter of Shenfu Office (1995) No. 194, in the original "Shenzhen Fangda
Building Materials Co., Ltd." on the basis of the establishment of the fundraising method. The unified social credit code is:
91440300192448589C; registered address: Fangda Technology Building, Keji South 12th Road, South District, High-tech
Industrial Park, Nanshan District, Shenzhen. Mr. Xiong Jianming is the legal representative.
The Company issued foreign currency shares (B shares) and local currency shares (A shares) and listed in November 1995 and
April 1996 respectively in Shenzhen Stock Exchange. The Company received the Reply to the Non-public Share Issuance of Fangda
China Group Co., Ltd. (CSRC License [2016] No.825) to allow the Company to conduct non-public issuance of 32,184,931 A-shares
in June 2016. According to the 2016 Annual Profit Allocation Scheme, which was approved by the 2016 Annual Shareholders'
Congress, the Company has a total share capital of 789, 094, 836 shares as the basis and a capital reserve fund of 5 shares per 10
shares to all shareholders. The registered capital at the end of 2017 was RMB 1,183,642,254.00. The Company repurchased and
cancelled 28,160,568.00 B shares in August 2018, 32,097,497.00 B shares in January 2019, 35,105,238.00 B shares in May 2020,
14404724.00 B shares in April 2021 and cancelled in April 2021. The existing registered capital is RMB1,073,874,227.00 yuan.
The Company has established a corporate governance structure that comprises shareholders’ meeting, board
of directors and supervisory committee. Currently, the Company sets up the President Office, Administrative
Department, HR Department, Enterprise Management Department, Financial Department, Audit and Supervisory
Department, Securities Department, Technology Innovation Department and IT Department and has established
subsidiaries including Fangda Decoration, Fangda Chuangzhi, Fangda Jiangxi New Material, Fangda Property and
Fangda New Energy.
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Annual Report 2021 of China Fangda Group Co., Ltd.
The business nature and main business operations of the Company and subsidiaries include (1) production and sales of curtain
wall materials, design, production and installation of construction curtain walls; (2) assembly and production of subway screen doors;
(3) development and operation of real estate projects on land, of which rights have been obtained lawfully; (4) R&D, installation and
sales of PV devices, design and installation of PV power plants.
Date of financial statement approval: This financial statement is approved by the Board of Directors of the Company on March 28,
2022.
2. Consolidation Scope and Change
The Company in the current period includes a total of 33 subsidiaries, of which 6 have been added this year and
2 have been reduced this year. For details, please refer to "Chapter X 8.Change of the scope of merger" and "Chapter
X 9. Rights and Interests in Other Subjects".
IV. Basis for the preparation of financial statements
1. Preparation basis
The Company prepares the financial statements based on continuous operation and according to actual
transactions and events, with figures confirmed and measured in compliance with the Accounting Standards for
Business Enterprises and other specific account standards, application guide and interpretations. The Company
has also disclosed related financial information according to the requirement of the Regulations of Information
Disclosure No.15 – General Provisions for Financial Statements (Revised in 2014) issued by the CSRC.
2. Continuous operation
The Company assessed the continuing operations capability of the Company for the 12 months from the end of the reporting period.
No matters were found that would affect the Company's ability to continue as a going concern. It is reasonable for the Company to
prepare financial statements based on continuing operations.
V. Significant Account Policies and Estimates
Specific accounting policy and estimate prompt:
The following major accounting policies and accounting estimates shall be formulated in accordance with the
accounting standards of the enterprise. Unmentioned operations are carried out in accordance with the relevant
accounting policies in the enterprise accounting standards.
1. Statement of compliance to the Enterprise Accounting Standard
These financial statements meet the requirements of the Accounting Standards for Business Enterprises and
truly and fully reflect the Company’s financial status, performance result, changes in shareholders’ equity
and cash flows.
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Annual Report 2021 of China Fangda Group Co., Ltd.
2. Fiscal Period
The Company The fiscal period ranges between January 1 and December 31 of the Gregorian calendar.
3. Operation period
Our normal business cycle is one year
4. Bookkeeping standard money
The Company's bookkeeping standard currency is Renminbi, and overseas subsidiaries are based on the currency
of the main economic environment in which they operate.
5. Accounting treatment of the entities under common and different control
(1) Consolidation of entities under common control
The assets and liabilities acquired by the Company in a business combination are measured at the book value
of the combined party in the consolidated financial statements of the ultimate controlling party on the date
of combination. Among them, if the accounting policy adopted by the merger party is different from that adopted
by the Company before the merger, the accounting policy is unified based on the principle of importance, that
is, the book value of the assets and liabilities of the merger party is adjusted according to the accounting
policy of the Company. If there is a difference between the book value of the net assets acquired by the Company
in the business combination and the book value of the consideration paid, first adjust the balance of the capital
reserve (capital premium or equity premium), the balance of the capital reserve (capital premium or equity premium)
If it is insufficient to offset, the surplus reserve and undistributed profits will be offset in sequence.
For the accounting treatment method of business combination under the same control through step-by-step
transactions, see Chapter X, V. important accounting policies and accounting estimates. 6. Preparation method
of consolidated financial statements (5) accounting treatment of special transactions.
(2) Consolidation of entities under different control
All identifiable assets and liabilities acquired by the Company during the merger shall be measured at
its fair value on the date of purchase. Among them, if the accounting policy adopted by the merger party is different
from that adopted by the Company before the merger, the accounting policy is unified based on the principle of
importance, that is, the book value of the assets and liabilities of the merger party is adjusted according to
the accounting policy of the Company. The merger cost of the Company on the date of purchase is greater than
the fair value of the assets and liabilities recognized by the purchaser in the merger, and is recognized as
goodwill. If the merger cost is less than the difference between the identifiable assets and the fair value of
the liabilities obtained by the purchaser in the enterprise merger, the merger cost and the fair value of the
identifiable assets and the liabilities obtained by the purchaser in the enterprise merger are reviewed, and
the merger cost is still less than the fair value of the identifiable assets and liabilities obtained by the
purchaser after the review, the difference is considered as the profit and loss of the current period of the
merger.
For the accounting treatment method of business combination not under the same control through step-by-step
transactions, see Chapter X, V. important accounting policies and accounting estimates. 6. Preparation method
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Annual Report 2021 of China Fangda Group Co., Ltd.
of consolidated financial statements (5) accounting treatment of special transactions.
(3) Treatment of related transaction fee in enterprise merger
Agency expenses and other administrative expenses such as auditing, legal consulting, or appraisal services
occurred relating to the merger of entities are accounted into current income account when occurred. The
transaction fees of equity certificates or liability certificates issued by the purchaser for payment for the
acquisition are accounted at the initial amount of the certificates.
6. Preparation of Consolidated Financial Statements
(1) Consolidation scope
The consolidated scope of the consolidated financial statements is determined on a control basis and includes
not only subsidiaries determined on the basis of voting rights (or similar voting rights) themselves or in
conjunction with other arrangements, but also structured subjects determined on the basis of one or more
contractual arrangements.
Control means the power possessed by the Company on invested entities to share variable returns by
participating in related activities of the invested entities and to impact the amount of the returns by using
the power. The subsidiary company is the subject controlled by the Company (including the enterprise, the divisible
part of the invested unit and the structured subject controlled by the enterprise, etc.). The structured subject
is the subject which is not designed to determine the controlling party by taking the voting right or similar
right as the decisive factor.
(2) Preparation of Consolidated Financial Statements
The Company prepares consolidated financial statements based on the financial statements of itself and
its subsidiaries and based on other relevant information.
The Company compiles consolidated financial statements, regards the whole enterprise group as an accounting
entity, reflects the overall financial status, operating results and cash flow of the enterprise group according
to the confirmation, measurement and presentation requirements of the relevant enterprise accounting standards,
and the unified accounting policy and accounting period.
① Merge the assets, liabilities, owner's rights and interests, income, expenses and cash flow of parent
company and subsidiary company.
② Offset the long-term equity investment of the parent company to the subsidiary company and the share
of the parent company in the ownership rights of the subsidiary company.
③ Offset the influence of internal transaction between parent company, subsidiary company and subsidiary
company. If an internal transaction indicates that the relevant asset has suffered an impairment loss, the part
of the loss shall be confirmed in full.
④ adjust the special transaction from the angle of enterprise group.
（3） Processing of subsidiaries during the reporting period
① Increase of subsidiaries or business
A. Subsidiary or business increased by business combination under the same control
(A) When preparing the consolidated balance sheet, adjust the opening number of the consolidated balance
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sheet and adjust the related items of the comparative statement. The same report entity as the consolidated balance
sheet will exist from the time of the final control party.
(B) When preparing the consolidated cash flow statement, the cash flows of the subsidiary and the business
combination from the beginning of the current period to the end of the reporting period are included in the
consolidated cash flow statement, and the related items of the comparative statement are adjusted, which is
regarded as the combined report body since the final The controller has been there since the beginning of control.
(C) When preparing the consolidated cash flow statement, the cash flows of the subsidiary and the business
combination from the beginning of the current period to the end of the reporting period are included in the
consolidated cash flow statement, and the related items of the comparative statement are adjusted, which is
regarded as the combined report body since the final The controller has been there since the beginning of control.
B. Subsidiary or business increased by business combination under the same control
(A) When preparing the consolidated balance sheet, the opening number of the consolidated balance sheet
is not adjusted.
(B) When preparing the consolidated profit statement, the income, expense and profit of the subsidiary
company and the business Purchase date and Closing balance shall be included in the consolidated profit statement.
(C) When the consolidated cash flow statement is prepared, the cash flow from the purchase date of the
subsidiary to the end of the reporting period is included in the consolidated cash flow statement.
② Disposal of subsidiaries or business
A. When preparing the consolidated balance sheet, the opening number of the consolidated balance sheet
is not adjusted.
B. When preparing the consolidated profit statement, the income, expense and profit of the subsidiary company
and the business opening and disposal date shall be included in the consolidated profit statement.
C. When the consolidated cash flow statement is prepared, the cash flow from the Beginning of the period
of the subsidiary to the end of the reporting period is included in the consolidated cash flow statement.
(4) Special considerations in consolidation offsets
① The long-term equity investment held by a subsidiary company shall be regarded as the inventory shares
of the Company as a subtraction of the owner's rights and interests, which shall be listed under the item of
"subtraction: Stock shares" under the item of owner's rights and interests in the consolidated balance sheet.
The long-term equity investments held by the subsidiaries are offset by the shares of the shareholders
of the subsidiaries.
② The "special reserve" and "general risk preparation" projects, because they are neither real capital
(or share capital) nor capital reserve, but also different from the retained income and undistributed profits,
are restored according to the ownership of the parent company after the long-term equity investment is offset
by the ownership rights and interests of the subsidiary company.
③ If there is a temporary difference between the book value of assets and liabilities in the consolidated
balance sheet and the taxable basis of the taxpayer due to the offset of the unrealized internal sales gain or
loss, the deferred income tax asset or the deferred income tax liability is confirmed in the consolidated balance
sheet, and the income tax expense in the consolidated profit statement is adjusted, with the exception of the
deferred income tax related to the transaction or event directly included in the owner's equity and the merger
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of the enterprise.
④ The unrealized internal transaction gains and losses incurred by the Company from selling assets to
subsidiaries shall be fully offset against the "net profit attributable to the owners of the parent company".
The unrealized internal transaction gains and losses arising from the sale of assets by the subsidiary to the
Company shall be offset between the “net profit attributable to the owners of the parent company” and the
“minority shareholder gains and losses” in accordance with the Company’s distribution ratio to the subsidiary.
The unrealized internal transaction gains and losses arising from the sale of assets between subsidiaries shall
be offset between the "net profit attributable to the owners of the parent company" and the "minority shareholders'
gains and losses" in accordance with the Company's distribution ratio to the seller's subsidiary.
⑤ If the current loss shared by the minority shareholders of the subsidiary exceeds the share of the minority
shareholders in the owner ’s equity of the subsidiary at the beginning of the period, the balance should still
be offset against the minority shareholders ’equity.
(5) Accounting treatment of special transactions
① Purchase minority shareholders' equity
The Company purchases the shares of the subsidiaries owned by the minority shareholders of the subsidiaries.
In the individual financial statements, the investment costs of the newly acquired long-term investments of the
minority shares shall be measured at the fair value of the price paid. In the consolidated financial statements,
the difference between the newly acquired long-term equity investment due to the purchase of minority equity
and the share of net assets that should be continuously calculated by the subsidiary since the purchase date
or the merger date should be adjusted according to the new shareholding ratio. The product (capital premium or
equity premium), if the capital reserve is insufficient to offset, the surplus reserve and undistributed profits
are offset in turn.
② Step-by-step acquisition of control of the subsidiary through multiple transactions
A. Enterprise merger under common control through multiple transactions
On the date of the merger, the Company determines the initial investment cost of the long-term equity
investment in the individual financial statements based on the share of the subsidiary ’s net assets that should
be enjoyed after the merger in the final controller ’s consolidated financial statements; the initial investment
cost and the difference between the book value of the long-term equity investment before the merger plus the
book value of the consideration paid for new shares acquired on the merger date, the capital reserve (capital
premium or equity premium) is adjusted, and the capital reserve (capital premium or equity premium) is insufficient
to offset Reduced, in turn offset the surplus reserve and undistributed profits.
In consolidated financial statements, assets and liabilities obtained by the merging party from the merged
party should be measured at the book value in the final controlling party’s consolidated financial statements
other than the adjustment made due to differences in accounting policies; adjust the capital surplus (share premium)
according to the difference between the initial investment cost and the book value of the held investment before
merger plus the book value of the consideration paid on the merger date. Where the capital surplus falls short,
the retained income should be adjusted.
If the merging party holds the equity investment before acquiring the control of the merged party and is
accounted for according to the equity method, the date of acquiring the original equity and the merging party
and the merged party are in the same party's final control from the later date to the merger date The relevant
gains and losses, other comprehensive income and other changes in owner's equity have been confirmed between
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them, and the retained earnings at the beginning of the comparative statement period should be offset separately.
A. Enterprise merger under common control through multiple transactions
On the merger day, in individual financial statements, the initial investment cost of the long-term equity
investment on the merger day is based on the book value of the long-term equity investment previously held plus
the sum of the additional investment costs on the merger day.
In the consolidated financial statements, the equity of the purchaser held prior to the date of purchase
is revalued according to the fair value of the equity at the date of purchase, and the difference between the
fair value and its book value is credited to the current investment income; If the shares held by the purchaser
prior to the date of purchase involve other consolidated gains under the equity law accounting, the other
consolidated gains related thereto shall be converted to the current gains on the date of purchase, with the
exception of the other consolidated gains arising from the remeasurement of the net assets or net liabilities
of the merged party. The Company disclosed in the notes the fair value of the equity of the purchased party held
before the purchase date and the amount of related gains or losses remeasured according to the fair value.
(3) The Company disposes of long-term equity investment in subsidiaries without losing control
The parent company partially disposes of the long-term equity investment in the subsidiary company without
losing control. In the consolidated financial statements, the disposal price corresponds to the disposal of the
long-term equity investment. The difference between the shares is adjusted for the capital reserve (capital
premium or equity premium). If the capital reserve is insufficient to offset, the retained earnings are adjusted.
④ The Company disposes of long-term equity investment in subsidiaries and loses control
A. One transaction disposition
If the Company loses control over the Invested Party due to the disposal of part of the equity investment,
it shall remeasure the remaining equity according to its fair value at the date of loss of control when compiling
the consolidated financial statement. The sum of the consideration obtained from the disposal of equity and the
fair value of the remaining equity minus the difference between the share of the original subsidiary 's net assets
that should be continuously calculated from the purchase date or the merger date, calculated as the loss of control
The investment income of the current period.
Other comprehensive income and other owner's equity changes related to the equity investment of the atomic
company are transferred to the current profit and loss when the control is lost, except for other comprehensive
income arising from the remeasurement of the net benefits or net assets of the defined benefit plan by the investee.
B. Multi-transaction step-by-step disposition
In consolidated financial statements, you should first determine whether a step-by-step transaction is
a "blanket transaction".
If the step-by-step transaction does not belong to a "package deal", in the individual financial statements,
for each transaction before the loss of control of the subsidiary, the book value of the long-term equity investment
corresponding to each disposal of equity is carried forward, the price received and the disposal The difference
between the book value of the long-term equity investment is included in the current investment income; in the
consolidated financial statements, it should be handled in accordance with the relevant provisions of "the parent
company disposes of the long-term equity investment in the subsidiary without losing control."
If a step-by-step transaction belongs to a "blanket transaction", the transaction shall be treated as a
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transaction that disposes of the subsidiary and loses control; In individual financial statements, the difference
between each disposal price before the loss of control and the book value of the long-term equity investment
corresponding to the equity being disposed of is first recognized as other consolidated gains and then converted
to the current loss of control at the time of the loss of control; In the consolidated financial statements,
for each transaction prior to the loss of control, the difference between the disposition of the price and the
disposition of the investment corresponding to the share in the net assets of the subsidiary shall be recognized
as other consolidated gains and shall, at the time of the loss of control, be transferred to the loss of control
for the current period.
Where the terms, conditions, and economic impact of each transaction meet one or more of the following
conditions, usually multiple transactions are treated as a "package deal":
(a) These transactions were concluded at the same time or in consideration of mutual influence.
(b) These transactions can only achieve the business result as a whole;
(c) The effectiveness of one transaction depends the occurrence of at least another transaction;
(d) A single transaction is not economic and is economic when considered together with other transactions.
(5) Proportion of minority shareholders in factor companies who increase capital and dilute ownership of
parent companies
Proportion of Others （ minority shareholders in factor companies who increase capital , dilute Subsidiaries
of parent companies. In the consolidated financial statements, the share of the parent company in the net book
assets of the former subsidiary of the capital increase is calculated according to the share ratio of the parent
company before the capital increase, the difference between the share and the net book assets of the latter
subsidiary after the capital increase is calculated according to the share ratio of the parent company, the capital
reserve (capital premium or capital premium), the capital reserve (capital premium or capital premium) is not
offset, and the retained income is adjusted.
7. Recognition of cash and cash equivalents
Cash refers to cash in stock and deposits that can be used for payment at any time. Cash equivalents refer to
investments with a short holding period (generally referring to expiry within three months from the date of
purchase), strong liquidity, easy to convert to a known amount of cash, and little risk of value change.
8.Foreign exchange business and foreign exchange statement translation
(1) Methods for determining conversion rates in foreign currency transactions
When the Company's foreign currency transactions are initially confirmed, they will be converted into the
bookkeeping standard currency at the spot exchange rate on the transaction date.
(2) Methods of conversion of foreign currency items on balance sheet days
At the balance sheet date, foreign currency items are translated on the spot exchange rate of the balance
sheet date. The exchange differences caused by the difference in exchange rates on the balance sheet date and
initial recognizing date or previous balance sheet date are included in the current profits and losses.
Non-monetary items accounted in foreign currency and on historical costs are exchanged with the spot exchange
rate on the transaction date. Non-monetary items accounted in foreign currency and on fair value are exchanged
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with the spot exchange rate on the determination date of the fair value. The exchange difference between the
accounting standard-currency amount and the original accounting standard-currency amount are included in the
current profits and losses.
(3) Translation of foreign exchange statements
Prior to the conversion of the financial statements of an enterprise's overseas operations, the accounting
period and policy of the overseas operations should be adjusted to conform to the accounting period and policy
of the enterprise. The financial statements of the corresponding currency (other than the functional currency)
should be prepared according to the adjusted accounting policy and the accounting period. The financial statements
of the overseas operations should be converted according to the following methods:
① The assets and liabilities items in the balance sheet are translated at the spot exchange rate on the
balance sheet date. Except for the "undistributed profits" items, the owner's equity items are translated at
the spot exchange rate when they occur.
② The income and expense items in the profit statement are converted at the spot exchange rate on the
transaction date or the approximate exchange rate of the spot exchange rate.
③ The foreign currency cash flow and the foreign subsidiary's cash flow are converted using the immediate
exchange rate or the approximate exchange rate at the date of the cash flow. The impact of exchange rate changes
on cash should be used as an adjustment item and presented separately in the cash flow statement.
④ During the preparation of the consolidated financial statements, the resulting foreign currency financial
statement conversion variance is presented separately under the owner's equity item in the consolidated balance
sheet.
When foreign operations are disposed of and the control rights are lost, the difference in foreign currency
statements related to the overseas operations that are listed in the shareholders' equity items in the balance
sheet is transferred to the profit or loss for the current period, either in whole or in proportion to the disposal
of the foreign operations.
9. Financial instrument
Financial instrument refers to a company’s financial assets and contracts that form other units of financial
liabilities or equity instruments.
(1) Recognition and de-recognition of financial instrument
The Company recognizes a financial asset or liability when it becomes one party in the financial instrument
contract.
Financial asset is derecognized when:
① The contractual right to receive the cash flows of the financial assets is terminated;
② The financial asset is transferred and meets the following derecognition condition.
If the current obligation of a financial liability (or part of it) has been discharged, the Company
derecognises the financial liability (or part of the financial liability). When the Company (borrower) and lender
enter into an agreement to replace the original financial liabilities by undertaking new financial liabilities
and the contract terms for the new financial liabilities are essentially different from those for the original
one, the original financial liabilities will be derecognized and new financial liabilities will be recognized.
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Where the Company makes substantial amendments to the contract terms of the original financial liability (or
part thereof), it shall terminate the original financial liability and confirm a new financial liability in
accordance with the amended terms.
Financial asset transactions in regular ways are recognized and de-recognized on the transaction date.
The conventional sale of financial assets means the delivery of financial assets in accordance with the contractual
terms and conditions, at the time set out in the regulations or market practices. Transaction date refers to
the date when the Company promises to buy or sell financial assets.
(2) Classification and subsequent measurement of financial assets
At initial recognition, the Company classifies financial assets into the following three categories based
on the business model of managing financial assets and the contractual cash flow characteristics of financial
assets: financial assets measured at amortized cost are measured at fair value and their changes are included
in other financial assets with current profit and loss and financial assets measured at fair value through profit
or loss. Unless the Company changes the business model for managing financial assets, in this case, all affected
financial assets are reclassified on the first day of the first reporting period after the business model changes,
otherwise the financial assets may not be initially confirmed.
Financial assets are measured at the fair value at the initial recognition. For financial assets measured
at fair value with variations accounted into current income account, related transaction expenses are accounted
into the current income. For other financial assets, the related transaction expenses are accounted into the
initial recognized amounts. Bills receivable and accounts receivable arising from the sale of commodities or
the provision of labor services that do not contain or do not consider significant financing components, the
Company performs initial measurement according to the transaction price defined by the income standard.
The subsequent measurement of financial assets depends on their classification:
① Financial assets measured at amortized cost
Financial assets that meet the following conditions at the same time are classified as financial assets
measured at amortized cost: The Company's business model for managing this financial asset is to collect
contractual cash flows as its goal; the contract terms of the financial asset stipulate that Cash flow is only
the payment of principal and interest based on the outstanding principal amount. For such financial assets, the
actual interest rate method is used for subsequent measurement according to the amortized cost. The gains or
losses arising from the termination of recognition, amortization or impairment based on the actual interest rate
method are included in the current profit and loss.
② Financial assets measured at fair value and whose changes are included in other comprehensive income
Financial assets that meet the following conditions at the same time are classified as financial assets
measured at fair value and their changes are included in other comprehensive income: The Company's business model
for managing this financial asset is to both target the collection of contractual cash flows and the sale of
financial assets. Objective; The contractual terms of the financial asset stipulate that the cash flow generated
on a specific date is only for the payment of principal and interest based on the outstanding principal amount.
For such financial assets, fair value is used for subsequent measurement. Except for impairment losses or gains
and exchange gains and losses recognized as current gains and losses, changes in the fair value of such financial
assets are recognized as other comprehensive income. Until the financial asset is derecognized, its accumulated
gains or losses are transferred to current gains and losses. However, the relevant interest income of the financial
asset calculated by the actual interest rate method is included in the current profit and loss.
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The Company irrevocably chooses to designate a portion of non-tradable equity instrument investment as
a financial asset measured at fair value and whose variation is included in other consolidated income. Only the
relevant dividend income is included in the current profit and loss, and the variation of fair value is recognized
as other consolidated income.
③ Financial assets measured at fair value with variations accounted into current income account
The above financial assets measured at amortized cost and other financial assets measured at fair value
and whose changes are included in other comprehensive income are classified as financial assets measured at fair
value and whose changes are included in the current profit and loss. For such financial assets, fair value is
used for subsequent measurement, and all changes in fair value are included in current profit and loss.
(3) Classification and measurement of financial liabilities
The Company classifies financial liabilities into financial liabilities measured at fair value and their
changes included in the current profit and loss, loan commitments and financial guarantee contract liabilities
for loans below market interest rates, and financial liabilities measured at amortized cost.
The subsequent measurement of financial liabilities depends on their classification:
① Financial liabilities measured at fair value with variations accounted into current income account
Such financial liabilities include transactional financial liabilities (including derivatives that are
financial liabilities) and financial liabilities designated as at fair value through profit or loss. After the
initial recognition, the financial liabilities are subsequently measured at fair value. Except for the hedge
accounting, the gains or losses (including interest expenses) are recognized in profit or loss. However, for
the financial liabilities designated as fair value and whose variations are included in the profits and losses
of the current period, the variable amount of the fair value of the financial liability due to the variation
of credit risk of the financial liability shall be included in the other consolidated income. When the financial
liability is terminated, the cumulative gains and losses previously included in the other consolidated income
shall be transferred out of the other consolidated income and shall be included in the retained income.
② Loan commitments and financial security contractual liabilities
A loan commitment is a promise that the Company provides to customers to issue loans to customers with
established contract terms within the commitment period. Loan commitments are provided for impairment losses
based on the expected credit loss model.
A financial guarantee contract refers to a contract that requires the Company to pay a specific amount
of compensation to the contract holder who suffered a loss when a specific debtor is unable to repay the debt
in accordance with the original or modified debt instrument terms. Financial guarantee contract liabilities are
subsequently measured based on the higher of the loss reserve amount determined in accordance with the principle
of impairment of financial instruments and the initial recognition amount after deducting the accumulated
amortization amount determined in accordance with the revenue recognition principle.
③ Financial liabilities measured at amortized cost
After initial recognition, other financial liabilities are measured at amortized cost using the effective
interest method.
Except in special circumstances, financial liabilities and equity instruments are distinguished according
to the following principles:
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a. If the Company cannot unconditionally avoid delivering cash or other financial assets to fulfill a
contractual obligation, the contractual obligation meets the definition of financial liability. While some
financial instruments do not explicitly contain terms and conditions for the delivery of cash or other financial
assets, they may indirectly form contractual obligations through other terms and conditions.
B. If a financial instrument is required to be settled with or can be settled with the Company's own equity
instruments, the Company's own equity instrument used to settle the instrument needs to be considered as a
substitute for cash or other financial assets or for the holder of the instrument to enjoy the remaining equity
in the assets after all liabilities are deducted. If it is the former, the instrument is the financial liabilities
of the issuer; if it is the latter, the instrument is the equity instrument of the issuer. In some cases, a financial
instrument contract provides that the Company shall or may use its own instrument of interest, in which the amount
of a contractual right or obligation is equal to the amount of the instrument of its own interest which may be
acquired or delivered multiplied by its fair value at the time of settlement, whether the amount of the contractual
right or obligation is fixed or is based entirely or in part on a variation of a variable other than the market
price of the instrument of its own interest, such as the rate of interest, the price of a commodity or the price
of a financial instrument, the contract is classified as a financial liability.
(4) Derivative financial instruments and embedded derivatives
Derivative financial instruments are initially measured at the fair value of the day when the derivative
transaction contract is signed, and are subsequently measured at their fair values. Derivative financial
instruments with a positive fair value are recognized as asset, and instruments with a negative fair value are
recognized as liabilities.
The gains and losses arising from the change in fair value of derivatives are directly included in the
profits and losses of the current period, except that the part of the cash flow that is valid in the hedge is
included in the other consolidated income and transferred out when the hedged item affects the gain and loss
of the current period.
For a hybrid instrument containing an embedded derivative instrument, if the principal contract is a
financial asset, the hybrid instrument as a whole applies the relevant provisions of the financial asset
classification. If the main contract is not a financial asset, and the hybrid instrument is not measured at fair
value and its changes are included in the current profit and loss for accounting, the embedded derivative does
not have a close relationship with the main contract in terms of economic characteristics and risks, and it is
If the instruments with the same conditions and exist separately meet the definition of derivative instruments,
the embedded derivative instruments are separated from the mixed instruments and treated as separate derivative
financial instruments. If the fair value of the embedded derivative on the acquisition date or the subsequent
balance sheet date cannot be measured separately, the hybrid instrument as a whole is designated as a financial
asset or financial liability measured at fair value and whose changes are included in the current profit or loss.
(5) Financial instrument Less
The Company shall confirm the preparation for loss on the basis of expected credit loss for financial assets
measured at amortization costs, creditor's rights investments measured at fair value, contractual assets, leasing
receivables, loan commitments and financial guarantee contracts, etc.
① Measurement of expected credit losses of accounts receivable
The expected credit loss refers to the weighted average of the credit losses of financial instruments that
are weighted by the risk of default. Credit loss refers to the difference between all contractual cash flows
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receivable from the contract and all cash flows expected to be received by the Company at the original actual
interest rate, that is, the present value of all cash shortages. Among them, the financial assets which have
been purchased or born by the Company shall be discounted according to the actual rate of credit adjustment of
the financial assets.
The expected lifetime credit loss is the expected credit loss due to all possible default events during
the entire expected life of the financial instrument.
Expected credit losses in the next 12 months are expected to result from possible defaults in financial
instruments within 12 months after the balance sheet date (or estimated duration of financial instruments if
the expected duration is less than 12 months) Credit losses are part of the expected lifetime credit loss.
On each balance sheet day, the Company measures the expected credit losses of financial instruments at
different stages. Where the credit risk has not increased significantly since the initial confirmation of the
financial instrument, it is in the first stage. The Company measures the preparation for loss according to the
expected credit loss in the next 12 months. Where the credit risk has increased significantly since the initial
confirmation but the credit impairment has not occurred, the financial instrument is in the second stage. Where
a credit impairment has occurred since the initial confirmation of the financial instrument, it shall be in the
third stage, and the Company shall prepare for measuring the expected credit loss of the whole survival period
of the instrument.
For financial instruments with low credit risk on the balance sheet date, the Company assumes that the
credit risk has not increased significantly since the initial recognition, and measures the loss provision based
on the expected credit losses in the next 12 months.
For financial instruments that are in the first and second stages and with lower credit risk, the Company
calculates interest income based on their book balances and actual interest rates without deduction for impairment
provision. For financial instruments in the third stage, interest income is calculated based on the amortized
cost and the actual interest rate after the book balance minus the provision for impairment.
Regarding bills receivable, accounts receivable and financing receivables, regardless of whether there
is a significant financing component, the Company measures the loss provision based on the expected credit losses
throughout the duration.
Accounts receivable/contract assets
Where there is objective evidence of impairment, as well as other receivable instruments, receivables,
other receivables, receivables financing and long-term receivables applicable to individual assessments,
separate impairment tests are performed to confirm expected credit losses and prepare individual impairment.
For notes receivable, accounts receivable, other receivables, financing of receivables, long-term receivables,
and contract assets for which there is no objective evidence of impairment, or when individual financial assets
cannot be assessed at a reasonable cost, the Company divides bills receivable, accounts receivable, other
receivables, receivable financing, long-term receivables, and contract assets into several combinations based
on credit risk characteristics, and calculates expected credit losses on the basis of the combination. The basis
for determining the combination is as follows:
The basis for determining the combination of notes receivable is as follows:
Notes Receivable Combination 1 Commercial Acceptance Bill
Notes Receivable Combination 2 Bank Acceptance Bill
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For Notes receivable divided into portfolios, the Company refers to historical credit loss experience,
combined with current conditions and predictions of future economic conditions, and calculates through default
risk exposure and expected credit loss rate within the next 12 months or the entire duration Expected credit
losses.
The basis for determining the combination of accounts receivable is as follows:
Accounts receivable combination 1 Accounts receivable business
Accounts receivable combination 2 Real estate receivable business
Accounts receivable combination 3 Others receivable business
Other receivable portfolio 4 Receivables from related parties within the scope of consolidation
For the accounts receivable divided into a combination, the Company refers to the historical credit loss
experience, combined with the current situation and the forecast of the future economic situation, compiles the
account receivable age and the whole expected credit loss rate table, and calculates the expected credit loss.
The basis for determining the combination of other receivables is as follows:
Other receivable portfolio 1 Interest receivable
Portfolio of other receivables 2 Dividends receivable
Other combinations of receivables 3 Deposit and margin receivable
Other receivable portfolio 4 Receivable advances
Combination of other receivables 5 Value-added tax receivable is increased and refunded
Other receivable portfolio 6 Receivables from related parties within the scope of consolidation
Other receivables portfolio 7 Other receivables
For other receivables divided into portfolios, the Company refers to historical credit loss experience,
combined with current conditions and predictions of future economic conditions, and calculates through default
risk exposure and expected credit loss rate within the next 12 months or the entire duration Expected credit
losses.
The basis for determining the combination of receivables financing is as follows:
Receivables financing portfolio 1 bank acceptance bill
For Notes receivable divided into portfolios, the Company refers to historical credit loss experience,
combined with current conditions and predictions of future economic conditions, and calculates through default
risk exposure and expected credit loss rate within the next 12 months or the entire duration Expected credit
losses.
The basis for determining the portfolio of contract assets is as follows:
Contract assets portfolio 1 conditional collection right of sales
Contract assets portfolio 2 Completed and unsettled project not meeting collection conditions
Contract assets portfolio 3 Quality guarantee deposit not meeting collection conditions
For contract assets divided into portfolios, the Company refers to historical credit loss experience,
combined with current conditions and predictions of future economic conditions, and calculates through default
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risk exposure and expected credit loss rate within the next 12 months or the entire duration Expected credit
losses.
Other debt investment
For other receivables divided into portfolios, the Company refers to historical credit loss experience,
combined with current conditions and predictions of future economic conditions, and calculates through default
risk exposure and expected credit loss rate within the next 12 months or the entire duration Expected credit
losses.
② Lower credit risk
If the risk of default on financial instruments is low, the borrower’s ability to meet its contractual
cash flow obligations in the short term is strong, and even if the economic situation and operating environment
are adversely changed over a long period of time, it may not necessarily reduce the receivables' performance
of their contractual cash. The ability of the flow obligation, the financial instrument is considered to have
a lower credit risk.
③ Significant increase in credit risk
The Company compares the default probability of the financial instrument during the expected lifetime
determined by the balance sheet date with the default probability of the expected lifetime during the initial
confirmation to determine the relative probability of the default probability of the financial instrument during
the expected lifetime Changes to assess whether the credit risk of financial instruments has increased
significantly since initial recognition.
In determining whether the credit risk has increased significantly since the initial recognition, the
Company considers reasonable and evidenced information, including forward-looking information, that can be
obtained without unnecessary additional costs or effort. The information considered by the Company includes:
A. Significant changes in internal price indicators resulting from changes in credit risk;
B. Adverse changes in business, financial or economic conditions that are expected to cause significant
changes in the debtor’s ability to perform its debt service obligations;
C. Whether the actual or expected operating results of the debtor have changed significantly; whether the
regulatory, economic or technical environment of the debtor has undergone significant adverse changes;
D. Whether there is a significant change in the value of the collateral used as debt collateral or the
guarantee provided by a third party or the quality of credit enhancement. These changes are expected to reduce
the debtor’s economic motivation for repayment within the time limit specified in the contract or affect the
probability of default;
E. Whether there is a significant change in the economic motivation that is expected to reduce the debtor's
repayment according to the contractual deadline;
F. Anticipated changes to the loan contract, including whether the expected violation of the contract may
result in the exemption or revision of contract obligations, granting interest-free periods, rising interest
rates, requiring additional collateral or guarantees, or making other changes to the contractual framework of
financial instruments change;
G. Whether the expected performance and repayment behavior of the debtor has changed significantly;
H. Whether the contract payment is overdue for more than (including) 30 days.
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Based on the nature of financial instruments, the Company assesses whether credit risk has increased
significantly on the basis of a single financial instrument or combination of financial instruments. When
conducting an assessment based on a combination of financial instruments, the Company can classify financial
instruments based on common credit risk characteristics, such as overdue information and credit risk ratings.
If the overdue period exceeds 30 days, the Company has determined that the credit risk of financial
instruments has increased significantly. Unless the Company does not have to pay excessive costs or efforts to
obtain reasonable and warranted information, it proves that although it has exceeded the time limit of 30 days
agreed upon in the Contract, credit risks have not increased significantly since the initial confirmation.
④ Financial assets with credit impairment
The Company assesses on the balance sheet date whether financial assets measured at amortized cost and
credit investments measured at fair value and whose changes are included in other comprehensive income have
undergone credit impairment. When one or more events that adversely affect the expected future cash flows of
a financial asset occur, the financial asset becomes a financial asset that has suffered a credit impairment.
Evidence that credit impairment has occurred in financial assets includes the following observable information:
Major financial difficulties have occurred to the issuer or the debtor; Breach of contract by the debtor,
such as payment of interest or default or overdue of principal; (B) The concession that the debtor would not
make under any other circumstances for economic or contractual considerations relating to the financial
difficulties of the debtor; The debtor is likely to be bankrupt or undertake other financial restructuring; The
financial difficulties of the issuer or debtor lead to the disappearance of the active market for the financial
asset; To purchase or generate a financial asset at a substantial discount, which reflects the fact that a credit
loss has occurred.
⑤ Presentation of expected credit loss measurement
In order to reflect the changes in the credit risk of financial instruments since the initial recognition,
the Company re-measures the expected credit losses on each balance sheet date, and the increase or reversal of
the loss provision resulting therefrom is included as an impairment loss or gain. Current profit and loss. For
financial assets measured at amortized cost, the loss allowance offsets the book value of the financial asset
listed on the balance sheet; for debt investments measured at fair value and whose changes are included in other
comprehensive income, the Company Recognition of its loss provisions in gains does not offset the book value
of the financial asset.
⑥ Canceled
If it is no longer reasonably expected that the contract cash flow of the financial assets will be fully
or partially recovered, the book balance of the financial assets will be directly reduced. Such write-off
constitutes the derecognition of related financial assets. This usually occurs when the Company determines that
the debtor has no assets or sources of income that generate sufficient cash flow to cover the amount that will
be written down.
If the financial assets that have been written down are recovered in the future, the reversal of the
impairment loss is included in the profit or loss of the current period.
(6) Transfer of financial assets
The transfer of financial assets refers to the following two situations:
A. Transfer the contractual right to receive cash flow of financial assets to another party;
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B. Transfers the financial assets to the other party in whole or in part, but reserves the contractual
right to collect the cash flow of the financial assets and undertakes the contractual obligation to pay the
collected cash flow to one or more recipients.
① De-identification of transferred financial assets
Those who have transferred almost all risks and rewards in the ownership of financial assets to the transferee,
or have neither transferred nor retained almost all the risks and rewards in the ownership of financial assets,
but have given up control of the financial assets, terminate the confirmation The financial asset.
In determining whether control over the transferred financial asset has been waived, the actual capacity
of the transferor to sell the financial asset is determined. If the transferor is able to sell the transferred
financial assets wholly to a third party that does not have a relationship with them, and has no additional
conditions to limit the sale, it indicates ds has waived control over the financial assets.
The Company pays attention to the essence of financial asset transfer when judging whether financial asset
transfer meets the condition of financial asset termination.
If the overall transfer of financial assets meets the conditions for termination of confirmation, the
difference between the following two amounts is included in the current profit and loss:
A. Continuing identification of transferred Book value；
B. The sum of the amount received as a result of the transfer and the amount accrued as a result of the change in the fair value
of the transfer in respect of the termination recognized portion of the amount previously charged directly to the other consolidated
proceeds (the financial assets involved in the transfer are those classified in accordance with Article 18 of Enterprise Accounting
Standard No. 22 - Financial Instruments Recognition and Measurement as measured by the fair value and whose change is charged to
the other consolidated proceeds).
If the partial transfer of financial assets meets the conditions for derecognition, the book value of the
entire transferred financial assets will be included in the derecognized part and the unterminated part (in this
case, the retained service assets are regarded as part of the continued recognition of financial assets) Between
them, they are apportioned according to their respective relative fair values on the transfer date, and the
difference between the following two amounts is included in the current profit and loss:
A. Termination of the book value of the recognized portion on the date of derecognition;
B. The sum of the amount received as a result of the transfer and the amount accrued as a result of the change in the fair value
of the transfer in respect of the termination recognized portion of the amount previously charged to the other consolidated proceeds
(the financial assets involved in the transfer are those classified in accordance with Article 18 of Enterprise Accounting Standard No.
22 - Financial Instruments Recognition and Measurement as measured by the fair value and whose change is charged to the other
consolidated proceeds).
② Continue to be involved in the transferred financial assets
If neither transfer nor retain almost all the risks and rewards of the ownership of financial assets, and
have not given up control of the financial assets, the relevant financial assets should be confirmed according
to the extent of their continued involvement in the transferred financial assets, and the relevant liabilities
should be recognized accordingly.
The extent to which the transferred financial assets continue to be involved refers to the extent to which
the enterprise undertakes the risk or compensation of the value change of the transferred financial assets.
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(III) Continuing identification of transferred financial assets
Where almost all risks and remuneration in relation to ownership of the transferred financial assets are
retained, the whole of the transferred financial assets shall continue to be recognized and the consideration
received shall be recognized as a financial liability.
The financial asset and the recognized related financial liabilities shall not offset each other. In the
subsequent accounting period, the enterprise shall continue to recognize the income (or gain) generated by the
financial asset and the costs (or losses) incurred by the financial liability.
(7) Deduction of financial assets and liabilities
Financial assets and financial liabilities should be listed separately in the balance sheet, and cannot
be offset against each other. However, if the following conditions are met, the net amount offset by each other
is listed in the balance sheet:
The Company has a statutory right to offset the confirmed amount, and such legal right is currently
enforceable;
The Company plans to settle the net assets or realize the financial assets and liquidate the financial
liabilities at the same time.
The transferring party shall not offset the transferred financial assets and related liabilities if it
does not meet the conditions for terminating the recognition.
(8) Recognition of fair value of Finance instruments
For the method of determining the fair value of financial assets and financial liabilities, see Chapter X,
V. important accounting policies and accounting estimates 34. Other important accounting policies and accounting
estimates (1) fair value measurement.
10. Notes receivable
See Chapter X, V, Important Accounting Policies and Accounting Estimates 9. Financial Tools.
11. Account receivable
See Chapter X, V, Important Accounting Policies and Accounting Estimates 9. Financial Tools.
The Company needs to comply with the disclosure requirements of the decoration and decoration industry in the Guidelines for the
Self-discipline and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.
12. Receivable financing
See Chapter X, V, Important Accounting Policies and Accounting Estimates 9. Financial Tools.
13. Other receivables
Methods for Determining Expected Credit Loss of Other Receivables and Accounting Processing Methods
See Chapter X, V, Important Accounting Policies and Accounting Estimates 9. Financial Tools.
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14. Inventories
(1) Classification of inventories
Inventory refers to the finished products or commodities held by the Company for sale in daily activities,
the products in process of production, the materials and materials consumed in the process of production or
providing labor services, including entrusted processing materials, raw materials, products in process, materials
in transit, stored goods, low value consumables, development costs, development products and contract performance
costs, etc.
(2) Pricing of delivering inventory
Inventories are measured at cost when procured. Raw materials, products in process and commodity stocks
in transit are measured by the weighted average method.
The real estate business inventory mainly includes inventory materials, products under development,
completed development products, and development products intended to be sold but temporarily rented out. Inventory
is measured at the actual costs when the fixed assets are obtained The actual costs of development products include
land transfer payment, infrastructure and facility costs, installation engineering costs, borrows before
completion of the development and other costs during the development process. The special maintenance funds
collected in the first period are included in the development overheads. The actual costs of the development
product are priced using the separate pricing method.
(3) Inventory system
The Company inventory adopts the perpetual inventory system, counting at least once a year, the inventory
profit and loss amount is included in the current year's profit and loss.
(4) Recognition of inventory realizable value and providing of impairment provision
On the balance sheet date, inventories are accounted depending on which is lower between the cost and the
net realizable value. If the cost is higher than the net realizable value, the impairment provision will be made.
The realizable net value of inventory should be recognized based on solid evidence with the purpose of
the inventory and after-balance-sheet-date events taken into consideration.
(1) In the course of normal production and operation, the net realizable value of finished goods, commodities
and materials directly used for sale shall be determined by the estimated price of the inventory minus the estimated
cost of sale and related taxes. The inventory held for the execution of a sales contract or a labor contract
shall be measured on the basis of the contract price as its net realizable value; If the quantity held is greater
than the quantity ordered under the sales contract, the net realizable value of the excess inventory is measured
on the basis of the general sales price. For materials used for sale, the market price shall be used as the
measurement basis for the net realizable value.
②In the normal production and operation process, the inventory of materials that need to be processed
is determined by the amount of the estimated selling price of the finished product minus the estimated cost to
be incurred at the time of completion, estimated sales expenses and related taxes Realize the net value. If the
net realizable value of the finished product produced by it is higher than the cost, the material is measured
at cost; If the decrease in the price of the material indicates that the net realizable value of the finished
product is lower than the cost, the material is measured as the net realizable value and the inventory is prepared
for a decrease based on its difference.
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③ Depreciation preparation of inventory is generally based on a single inventory item; For a large number
of inventories with a lower unit price, they are accrued by inventory type.
④ If the factors affecting the previous write-down of inventory value have disappeared on the balance
sheet date, the amount of the write-down will be restored and transferred back within the amount of inventory
depreciation reserve that has been accrued, and the amount returned will be included in the current profit and
loss.
(5) Methods of amortization of swing materials
Low-value consumables are amortized on on-off amortization basis at using.
15. Contract assets
The Company presents contract assets or liabilities in the balance sheet according to the relationship
between performance obligation and customer payment. The consideration for which the Company is entitled to
receive (subject to factors other than the passage of time) for the transfer of goods or the provision of services
to customers is listed as contract assets. The Company's obligation to transfer goods or provide services to
customers for consideration received or receivable from customers is listed as contractual liabilities.
For the determination method and accounting treatment method of the Company's expected credit loss of
contract assets, see 9. Financial instruments in Chapter X, V. Important accounting policies and accounting
estimates.
Contract assets and contract liabilities are listed separately in the balance sheet. Contract assets and
contract liabilities under the same contract are listed in net amount. If the net amount is the debit balance,
it shall be listed in "contract assets" or "other non-current assets" according to its liquidity; if the net
amount is the credit balance, it shall be listed in "contract liabilities" or "other non-current liabilities"
according to its liquidity. Contract assets and contract liabilities under different contracts cannot offset
each other.
16. Contract costs
Contract cost is divided into contract performance cost and contract acquisition cost.
The cost incurred by the Company in performing the contract shall be recognized as an asset when the following
conditions are met simultaneously:
① The cost is directly related to a current or expected contract, including direct labor, direct materials,
manufacturing expenses (or similar expenses), clearly borne by the customer, and other costs incurred only due
to the contract;
② This cost increases the Company's future resources for fulfilling its performance obligations.
③ The cost is expected to be recovered.
If the incremental cost incurred by the Company to obtain the contract is expected to be recovered, it
shall be recognized as an asset as the contract acquisition cost.
The assets related to the contract cost shall be amortised on the same basis as the income from goods or
services related to the assets; however, if the amortization period of the contract acquisition cost is less
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than one year, the Company shall include it in the current profit and loss when it occurs.
If the book value of the assets related to the contract cost is higher than the difference between the
following two items, the Company will make provision for impairment for the excess part and recognize it as the
loss of asset impairment, and further consider whether the estimated liabilities related to the loss contract
should be made:
① The residual consideration expected to be obtained due to the transfer of goods or services related
to the asset;
② The estimated cost to be incurred for the transfer of the relevant goods or services.
If the above provision for impairment of assets is subsequently reversed, the book value of the asset after
reversal shall not exceed the book value of the asset on the reversal date without provision for impairment.
The contract performance cost recognized as an asset with an amortization period of no more than one year
or one normal business cycle at the time of initial recognition shall be listed in the "inventory" item, and
the amortization period of no more than one year or one normal business cycle at the time of initial recognition
shall be listed in the "other non-current assets" item.
The contract acquisition cost recognized as an asset shall be listed in the item of "other current assets"
when the amortization period does not exceed one year or one normal business cycle at the time of initial
recognition, and listed in the item of "other non-current assets" when the amortization period exceeds one year
or one normal business cycle at the time of initial recognition.
17. Long-term share equity investment
The Group's long-term equity investment includes control on invested entities and significant impacts on
equity investment. Invested entities on which the Group has significant impacts are associates of the Group.
(1) Basis for recognition of common control and major influence on invested entities
Common control refers to the common control of an arrangement in accordance with the relevant agreement,
and the relevant activities of the arrangement must be agreed upon by the participants who share control. In
determining whether there is common control, the first step is to determine whether all or a group of participants
collectively control the arrangement, which is considered collective control by all or a group of participants
if all or a group of participants must act together to determine the activities associated with the arrangement.
Secondly, it is judged whether the decision on related activities of the arrangement must be agreed by the
participants who collectively control the arrangement. If there is a combination of two or more parties that
can collectively control an arrangement, it does not constitute joint control. When judging whether there is
joint control, the protective rights enjoyed are not considered.
Major influence refers to the power to participate in decision-making of financial and operation policies
of a company, but cannot control or jointly control the making of the policies. When considering whether the
Company can impose significant impacts on the invested entity, impacts of conversion of shares with voting rights
held directly or indirectly by the investor and voting rights that can be executed in this period held by the
investor and other party into shares of the invested entity should be considered.
If the Company directly or through subsidiaries holds more than 20% (inclusive) but less than 50% of the
shares with voting rights of the invested entity, unless there is clear evidence proving that the Company cannot
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participate the decision-making of production and operation of the invested entity, the Company has major
influence on the invested entity.
(2) Recognition of initial investment costs
Long-term equity investments formed by merger of enterprises shall be determined in accordance with
the following provisions:
A. In the case of an enterprise merger under the same control, where the merging party makes a valuation
of the merger by payment of cash, transfer of non-cash assets or undertaking liabilities, the share of the
book value of the owner's interest in the final controlling party's consolidated financial statements as
the initial investment cost of the long-term equity investment at the date of the merger. The difference
between the initial investment cost of long-term equity investment and the cash paid, the transferred non-cash
assets and the book value of the debt assumed shall be adjusted to the capital reserve; if the capital reserve
is insufficient to offset, the retained earnings shall be adjusted;
Long-term equity investment generated by enterprise merger: for long-term equity investment obtained
by merger of enterprises under common control, the obtained share of book value of the interests of the merged
party’s owner in the consolidate financial statements on the merger date is costs; for long-term equity
investment obtained by merger of enterprises not under common control, the merger cost is the investment
cost. Adjust the capital reserve according to the difference between the initial investment cost of long-term
equity investment and the total face value of the issued shares. If the capital reserve is insufficient to
offset or reduce, the retained income shall be adjusted;
For merger of entities under different control, the merger cost is the fair value of the asset paid,
liability undertaken, and equity securities issued for exchanging of control power over the entities at the
day of acquisition. Agency expenses and other administrative expenses such as auditing, legal consulting,
or appraisal services occurred relating to the merger of entities are accounted into current income account
when occurred.
Long-term equity investments formed by merger of enterprises shall be determined in accordance with the
following provisions:
For long-term equity investment obtained by cash, the actually paid consideration is the initial investment
cost. Initial investment costs include expenses, taxes and other necessary expenditures directly related to the
acquisition of long-term equity investments;
B. Long-term equity investments acquired from the issuance of interest securities are the initial investment
costs based on the fair value of the issue interest securities;
C. For long-term equity investments obtained through non-monetary asset exchanges, if the exchange has
commercial substance and the fair value of the exchanged assets or exchanged assets can be reliably measured,
the fair value of the exchanged assets and relevant taxes shall be used as the initial Investment cost, the
difference between the fair value and book value of the swapped-out asset is included in the current profit and
loss; if the non-monetary asset exchange does not meet the above two conditions at the same time, the book value
of the swapped-out asset and relevant taxes will be used as the initial investment cost.
D. Long-term equity investments acquired through debt restructuring determine their recorded value at the
fair value of the waived claims and other costs such as taxes directly attributable to the assets and account
for the difference between the fair value and the book value of the waived claims.
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(3) Subsequent measurement and recognition of gain/loss
The Company uses the cost method to measure long-term share equity investment in which the Company can
control the invested entity; and uses the equity method to measure long-term share equity investment in which
the Company has substantial influence on the invested entity.
① Cost
For the long-term equity investment measured on the cost basis, except for the announced cash dividend
or profit included in the practical cost or price when the investment was made, the cash dividends or profit
distributed by the invested entity are recognized as investment gains in the current gain/loss account.
Equity
Gains from long-term equity investment measured by equity
When the equity method is used to measure long-term equity investment, the investment cost will not be
adjusted if the investment cost of the long-term equity investment is larger than the share of fair value of
the recognizable assets of the invested entity. When it is smaller than the share of fair value of the recognizable
assets of the invested entity, the book value will be adjusted and the difference is included in the current
gains of the investment.
When the equity method is used, the current investment gain is the share of the net gain realized in the
current year that can be shared or borne, recognized as investment gain and other misc. income. The book value
of the long-term equity investment is adjusted accordingly. The book value of the long-term equity investment
should be accordingly decreased based on the share of profit or cash dividend announced by the invested entity;
according to other changes in the owner’s equity except for net profit and loss, other misc income and profit
distribution of the invested entity, adjust the book value of the long-term equity investment and record it in
the capital surplus (other capital surplus). When the share of the net gains that can be enjoyed is recognized,
it is recognized after the net profit of the invested entity is adjusted based on the fair value of the recognizeable
assets of the invested entity according to the Company's accounting policies and accounting period. Where the
accounting policy and accounting period adopted by the Invested unit are inconsistent with the Company, the
financial statements of the Invested unit shall be adjusted in accordance with the accounting policy and accounting
period of the Company, and the investment income and other consolidated income shall be recognized. Internal
transaction gains not realized between the Company and affiliates is measured according to the shareholding
proportion and the investment gains is recoginzied after deduction. The unrealized internal transaction loss
between the Company and the invested entity is the impairment loss of transferred assets and should not be written
off.
Where substantial influence on invested entities is imposed or joint control is implemented due to increase
in investment, the sum of the fair value of the original equity and increased investment on the conversion date
is the initial investment cost under the equity method. If the equity investment originally held is classified
as other equity instrument investment, the difference between the fair value and the book value, as well as the
accumulated gains or losses originally included in other comprehensive income, shall be transferred out of other
comprehensive income and included in retained income in the current period when the equity method is adopted.
Where joint control or substantial influence on invested entities is lost due to disposal of part of
investment, the remaining equity after the disposal should be treated according to the Enterprise Accounting
Standard No.22 – Recognition and Measurement of Financial Instruments from the date of losing the joint control
or substantial influence. The difference between the fair value and book value should be accounted the profit
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and loss of the current period. For other misc. incomes of original share equity investment determined using
the equity method, when the equity method is no longer used, it should be treated based on the same basis of
the treatment of related assets or liability of the invested entities; the other owners' interests related to
the original share equity investment should be transferred to gain/loss of the current period.
(4) Equity investment held for sale
For the remaining equity investments not classified as assets held for sale, the equity method is adopted
for accounting treatment.
Equity investments classified as held for sale to associates that are no longer eligible to hold classified
assets for sale are retrospectively adjusted using the equity method starting from the date that they are
classified as held for sale. The classification is adjusted to hold the financial statements for the period to
be sold.
(5) Impairment examination and providing of impairment provision
For the investment in subsidiaries and associated enterprises, the method of withdrawing asset impairment
is shown in Chapter X, V. important accounting policies and accounting estimates. 24. Impairment of long-term
assets.
XVIII. Investment real estates
(1) Classification of investment real estate
Investment real estates are held for rent or capital appreciation, or both. These include, inter alia:
① Leased land using right
(2) the right to use the land that is transferred after holding and preparing for the increment.
③ Leased building
(2) Measurement of investment real estate
For investment real estates with an active real estate transaction market and the Company can obtain market
price and other information of same or similar real estates to reasonably estimate the investment real estates’
fair value, the Company will use the fair value mode to measure the investment real estate subsequently. Variations
in fair value are accounted into the current gain/loss account.
The fair value of investment real estates is determined with reference to the current market prices of
same or similar real estates in active markets; when no such price is available, with reference to the recent
transaction prices and consideration of factors including transaction background, date and district to reasonably
estimate the fair value; or based on the estimated lease gains and present value of related cash flows.
For investment real estate under construction (including investment real estate under construction for
the first time), if the fair value cannot be reliably determined but the expected fair value of the real estate
after completion is continuously and reliably obtained, the investment real estate under construction is measured
by cost. When the fair value can be measured reliably or after completion (the earlier one), it is measured at
fair value. For an investment real estate whose fair value is proven unable to be obtained continuously and reliably
by objective evidence, the real estate will be measured at cost basis until it is disposed and no residual value
remains as assumed.
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If the cost model is used for subsequent measurement of investment real estate, depreciation or amortization
is calculated according to the straight-line method after the cost of investment real estate minus accumulated
impairment and net residual value. See this Chapter X V. Important accounting policies, for the method of accruing
asset impairment 24. Impairment of long-term assets in accounting estimates.
The types of investment real estate, estimated economic useful life and estimated net residual value rate
are determined as follows:
Type Service year (year) Residual rate % Annual depreciation rate %
Houses & buildings 20-50 10.00 1.80-4.50
19. Fixed assets
(1) Recognition conditions
Fixed assets is defined as the tangible assets which are held for the purpose of producing goods, providing services, lease or for
operation & management, and have more than one accounting year of service life. Fixed assets are recognized at the actual cost of
acquisition when the following conditions are met: (1) The economic benefits associated with the fixed assets are likely to flow into
the enterprise.
Fixed assets are recognized at the actual cost of acquisition when the following conditions are met: (1) The economic benefits
associated with the fixed assets are likely to flow into the enterprise.
② The cost of the fixed assets can be measured reliably.
Overhaul cost generated by regular examination on fixed assets is recognized as fixed assets costs when there is evidence proving
that it meets fix assets recognition conditions. If not, it will be accounted into the current gain/loss account.
(2) Depreciation method
The types of investment real estate, estimated economic useful life and estimated net residual value rate are determined as
follows:
Annual depreciation rate
Type Depreciation method Service year (year) Residual rate %
%
Houses & buildings Average age 20-50 10.00 1.80-4.50
Mechanical equipment Average age 10.00 10.00 9.00
Transportation facilities Average age 5.00 10.00 18.00
Electronics and other
Average age 5.00 10.00 18.00
devices
PV power plants Average age 20.00 5.00 4.75
For fixed assets for which depreciation provision is made, the depreciation rate will be determined after
the accumulative depreciation provision amount is deducted.
At end of each fiscal year, verification will be made on the useful life, predicted retained value, and
depreciation basis. The useful life will be adjusted if the useful life is different from the predicted one;
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the net residual value will be adjusted if the net residual value is different from the predicted one.
20. Construction in process
Construction in progress is accounted for by project classification.
Standard and timing for transferring construction in process into fixed assets
The full expenditure incurred on the construction-in-progress project as a fixed asset is recorded as the
value of the asset before the asset is constructed to the intended usable state. This includes construction costs,
the original cost of equipment, other necessary expenditures incurred in order to enable the construction works
to reach the intended usable status and the borrowing costs incurred for the specific borrowing of the project
and the general borrowing expenses incurred before the assets reach the intended usable status. Construction
in process will be transferred to fixed assets when it reaches the preset service condition. The fixed assets
that have reached the intended usable state but have not been completed shall be transferred to the fixed assets
according to the estimated value according to the estimated value according to the estimated value according
to the project budget, cost or actual project cost, etc. The depreciation of the fixed assets shall be accrued
according to the Company's fixed assets depreciation policy. The original estimated value shall be adjusted
according to the actual cost after the completion.
XXI. Borrowing expenses
(1) Recognition principles for capitalization of borrowing expenses
Borrowing expenses occurred to the Company that can be accounted as purchasing or production of asset
satisfying the conditions of capitalizing, are capitalized and accounted as cost of related asset.
(1) Asset expenditure has occurred;
② The borrowing expense has already occurred;
③ Purchasing or production activity, which is necessary for the asset to reach the useful status, has
already started.
Other interest on loans, discounts or premiums and exchange differences are included in the income and
loss incurred in the current period.
If the construction or production of assets satisfying the capitalizing conditions is suspended abnormally
for over 3 months, capitalizing of borrowing expenses shall be suspended. During the normal suspension period,
borrowing expenses will be capitalized continuously.
When the asset satisfying the capitalizing conditions has reached its usable or sellable status,
capitalizing of borrowing expenses shall be terminated.
(2) Calculation of the capitalization amount of borrowing expense
Interest expenses generated by special borrowings less the interest income obtained from the deposit of
unused borrowings or investment gains from temporary investment is capitalized; the capitalization amount for
general borrowing is determined based on the capitalization rate which is the exceeding part of the accumulative
assets expense over weighted average of the assets expense of the special borrowing/used general borrowing.
If the assets that are constructed or produced under the condition of capitalization occupy the general borrowing,
the interest amount to be capitalized in the general borrowing shall be calculated and determined by multiplying
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the capital rate of the general borrowing by the weighted average of the asset expenditure of the accumulated
assets whose expenditure exceeds that of the specialized borrowing. The capitalization ratio is the weighted
average interest rate of general borrowings.
22. Use right assets
The term "right to use assets" refers to the right of the lessee to use the leased assets during the lease
term.
At the beginning of the lease term, the right of use assets is initially measured at cost. This cost includes:
(1) The initial measurement amount of lease liabilities;
(2) For the lease payment paid on or before the beginning of the lease term, if there is lease incentive,
the relevant amount of lease incentive enjoyed shall be deducted;
(3) Initial direct expenses incurred by the lessee;
(4) The estimated cost incurred by the lessee for dismantling and removing the leased assets, restoring the
site where the leased assets are located or restoring the leased assets to the state agreed in the lease terms.
The Company recognizes and measures the cost in accordance with the recognition standards and measurement methods
of estimated liabilities. See 29. Estimated liabilities in Chapter X, V. important accounting policies and
accounting estimates for details. If the above costs are incurred for the production of inventories, they will
be included in the cost of inventories.
Depreciation of right of use assets is accrued by using the straight-line method. If it can be reasonably
determined that the ownership of the leased asset will be obtained at the expiration of the lease term, the
depreciation rate shall be determined according to the asset category of the right to use and the estimated net
residual value rate within the expected remaining service life of the leased asset; If it is impossible to
reasonably determine that the ownership of the leased asset will be obtained at the expiration of the lease term,
the depreciation rate shall be determined according to the asset category of the right of use within the shorter
of the lease term and the remaining service life of the leased asset.
23. Intangible assets
(1) Pricing method, service life and depreciation test
(1) Pricing of intangible assets
Recorded at the actual cost of acquisition.
Amortization of intangible assets
① Useful life of intangible assets with limited useful life
Item Estimated useful Basis
life
Land using right Term Use right assets
Trademarks and patents 10 Reference to determine the lifetime of a company for
which it can bring economic benefits
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Proprietary technology 10 Reference to determine the lifetime of a company for
which it can bring economic benefits
Software 5. 10 years Reference to determine the lifetime of a company for
which it can bring economic benefits
At the end of each year, the Company will reexamine the useful life and amortization basis of intangible
assets with limited useful life. Upon review, the service life and amortization methods of intangible assets
at the end of the period are not different from those previously estimated.
(2) Intangible assets which cannot be foreseeable to bring economic benefits to enterprises shall be regarded
as intangible assets whose useful life is uncertain. For intangible assets with uncertain service life, the Company
reviews the service life of intangible assets with uncertain service life at the end of each year. If it is still
uncertain after rechecking, it shall conduct an impairment test on the balance sheet date.
③ Amortization of intangible assets
For intangible assets with limited service life, the Company shall determine their service life at the time of
acquisition, and shall use the straight line method system to reasonably amortize their service life, and the
amortization amount shall be included in the profit and loss of the current period according to the beneficial
items. The specific amortization amount is the amount after the cost is deducted from the estimated residual
value. For fixed assets for which depreciation provision is made, the depreciation rate will be determined after
the accumulative depreciation provision amount is deducted. The residual value of an intangible asset with limited
useful life is treated as zero, except where a third party undertakes to purchase the intangible asset at the
end of its useful life or to obtain expected residual value information based on the active market, which is
likely to exist at the end of its useful life.
(2) Accounting policies for internal R&D expenses
Specific standard for distinguish between research and development stage
① The Company takes the information and related preparatory activities for further development activities
as the research stage, and the intangible assets expenditure in the research stage is included in the current
profit and loss period.
② The development activities carried out after the Company has completed the research stage as the
development stage.
Specific conditions for capitalization of expenditures in the development phase
Expenditures in the development phase can be recognized as intangible assets only when the following
conditions are met:
A. It is technically feasible to complete the intangible asset so that it can be used or sold;
B. Have the intention to complete the intangible asset and use or sell it;
C. The way intangible assets generate economic benefits, including the ability to prove that the products
produced by the intangible assets exist in the market or the intangible assets themselves exist in the market,
and the intangible assets will be used internally, which can prove their usefulness;
D. Have sufficient technical, financial and other resource support to complete the development of the
intangible asset, and have the ability to use or sell the intangible asset;
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E. The expenditure attributable to the development stage of the intangible asset can be reliably measured.
24. Assets impairment
The Group uses the cost mode to continue measuring the assets impairment to investment real estate, fixed
assets construction in progress, intangible assets and goodwill (except for the inventories, investment real
estate measured by the fair value mode, deferred income tax assets and financial assets). The method is determined
as follows:
The Company judges whether there is a sign of impairment to assets on the balance sheet day. If such sign
exists, the Company estimates the recoverable amount and conducts the impairment test. Impairment test is
conducted annually for goodwill generated by mergers and intangible assets that have not reached the useful
condition no matter whether the impairment sign exists.
The recoverable amount is determined by the higher of the net of fair value minus disposal expense and
the present value of the predicted future cash flow. The Company estimates the recoverable amount on the individual
asset item basis; whether it is hard to estimate the recoverable amount on the individual asset item basis,
determine the recoverable amount based on the asset group that the assets belong to. The assets group is determined
by whether the main cash flow generated by the Group is independent from those generated by other assets or assets
groups.
When the recoverable amount of the assets or assets group is lower than its book value, the Company writes
down the book value to the recoverable amount, the write-down amount is accounted into the current income account
and the assets impairment provision is made.
For goodwill impairment test, the book value of goodwill generated by mergers is amortized through reasonable
measures since the purchase day to related asset groups; those cannot be amortized to related assets groups are
amortized to related combination of asset groups. The related asset groups or combination of asset groups refer
to those that can benefit from the synergistic effect of mergers and must not exceed to the reporting range
determined by the Company.
When the impairment test is conducted, if there is sign of impairment to the asset group or combination
of asset groups related to goodwill, first perform impair test for asset group or combination of asset groups
without goodwill and calculate the recoverable amount and recognize the related impairment loss. Then conduct
impairment test on those with goodwill, compare the book value with recoverable amount. If the recoverable amount
is lower than the book value, recognize the impairment loss of the goodwill.
Once recognized, the asset impairment loss cannot be written back in subsequent accounting period.
25. Long-term amortizable expenses
The long-term deferred expenses shall be used to calculate the expenses that have occurred but should be borne
by the Company in the current and subsequent periods with an amortization period of more than one year. The
Company's long-term deferred expenses are amortized averagely during the benefit period.
26. Contract liabilities
See 15. Contract assets in Chapter X, V. Important Accounting Policies and Accounting Estimates for details.
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27. Staff remuneration
(1) Accounting of operational leasing
① Basic salary of employees (salary, bonus, allowance, subsidy)
In the accounting period for which the staff and workers provide services, the Company shall confirm the
actual short-term remuneration as liabilities and shall account for the current income and loss, except as required
or permitted by other accounting standards.
② Employee welfare
The employee benefits incurred by the Company shall be included in the current profit and loss or related
asset costs according to the actual amount incurred. Where the employee's benefit is non-monetary, it shall be
measured on the basis of fair value.
③ Social insurance premiums and housing accumulation funds such as health insurance premiums, work injury
premiums, birth insurance premiums, trade union funds and staff and education funds
The Company pays the medical insurance premiums, work injury insurance premiums, birth insurance premiums,
etc. social insurance premiums and housing accumulation funds for the staff and workers, as well as the union
funds and the staff and workers education funds according to the regulations, in the accounting period for which
the staff and workers provide services, the corresponding salary amount of the staff and workers, and confirms
the corresponding liabilities, which are included in the current profit and loss or related asset costs.
④ Short-term paid leave
The Company accumulates the salary of the employees who are absent from work with pay when the employees
provide service, thus increasing their future right of absence with pay. The Company confirms the salary of the
employee related to the absence of non-cumulative salary during the actual absence accounting period.
⑤ Short-term profit share program
If the profit-sharing plan meets the following conditions at the same time, the Company shall confirm the
salary payable to the staff and workers:
A. The legal or presumptive obligation of the enterprise to pay the remuneration of its employees as a
result of past matters;
B. The amount of employee compensation obligations due to the profit sharing plan can be reliably estimated.
(2) Accounting of post-employment welfare
The Company's post-employment benefit plan is defined contribution plan. Defined contribution plans include basic
endowment insurance, unemployment insurance, etc. During the accounting period when employees provide services
for them, the Company shall recognize the deposit amount calculated according to the defined deposit plan as
liabilities and include it in the current profits and losses or related asset costs.
(3) Accounting of dismiss welfare
If the Company provides termination benefits to employees, the employee compensation liabilities arising
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from the termination benefits shall be recognized at the earliest of the following two and shall be included
in the current profit and loss:
① An enterprise may not unilaterally withdraw the resignation benefits provided for by the dismissal plan
or reduction proposal;
② When the enterprise recognizes the costs or expenses related to the reorganization involving the payment
of resignation benefits.
28. Lease liabilities
The lease liabilities are initially measured Company shall according to the present value of the unpaid
lease payments at the beginning of the lease term. The lease payment includes the following five items:
(1) Fixed payment amount and substantial fixed payment amount. If there is lease incentive, the relevant
amount of lease incentive shall be deducted;
(2) Variable lease payments depending on index or ratio;
(3) The exercise price of the purchase option, provided that the lessee reasonably determines that the option
will be exercised;
(4) The amount to be paid for exercising the option to terminate the lease, provided that the lease term
reflects that the lessee will exercise the option to terminate the lease;
(5) The amount expected to be paid according to the residual value of the guarantee provided by the lessee.
When calculating the present value of lease payments, the implicit interest rate of the lease is used as
the discount rate. If the implicit interest rate of the lease cannot be determined, the incremental borrowing
interest rate of the company is used as the discount rate. The difference between the lease payment amount and
its present value is regarded as unrecognized financing expenses, and the interest expenses are recognized
according to the discount rate of the present value of the lease payment amount during each period of the lease
term and included in the current profit and loss. The amount of variable lease payments not included in the
measurement of lease liabilities shall be included in the current profit and loss when actually incurred.
After the beginning date of the lease term, when the actual fixed payment amount changes, the expected
payable amount of the guaranteed residual value changes, the index or ratio used to determine the lease payment
amount changes, the evaluation results or actual exercise of the purchase option, renewal option or termination
option changes, the Company remeasures the lease liability according to the present value of the changed lease
payment amount, And adjust the book value of the right to use assets accordingly.
29. Anticipated liabilities
(1) Recognition standards of anticipated liabilities
When responsibilities occurred in connection to contingent issues, and all of the following conditions
are satisfied, they are recognized as expectable liability in the balance sheet:
① This responsibility is a current responsibility undertaken by the Company;
② Execution of this responsibility may cause financial benefit outflow from the Company;
③ Amount of the liability can be reliably measured.
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(2) Measurement of anticipated liabilities
Expected liabilities are initially measured at the best estimation on the expenses to exercise the current
responsibility, and with considerations to the relative risks, uncertainty, and periodic value of currency. On
each balance sheet date, review the book value of the estimated liabilities. Where there is conclusive evidence
that the book value does not reflect the current best estimate, the book value is adjusted to the current best
estimate.
30. Revenue
The Company needs to comply with the disclosure requirements of the decoration and decoration industry in the
Guidelines for the Self-discipline and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry
Information Disclosure.
(1) General principles
Income is the total inflow of economic benefits formed in the daily activities of the Company, which will
lead to the increase of shareholders' equity and has nothing to do with the capital invested by shareholders.
The Company has fulfilled the performance obligation in the contract, that is, the revenue is recognized
when the customer obtains the control right of relevant goods. To obtain the control right of the relevant commodity
means to be able to dominate the use of the commodity and obtain almost all the economic benefits from it.
If there are two or more performance obligations in the contract, the Company will allocate the transaction
price to each single performance obligation according to the relative proportion of the separate selling price
of the goods or services promised by each single performance obligation on the start date of the contract, and
measure the income according to the transaction price allocated to each single performance obligation.
The transaction price refers to the amount of consideration that the Company is expected to be entitled
to receive due to the transfer of goods or services to customers, excluding the amount collected on behalf of
a third party. When determining the contract transaction price, if there is a variable consideration, the Company
shall determine the best estimate of the variable consideration according to the expected value or the most likely
amount, and include it in the transaction price with the amount not exceeding the accumulated recognized income
when the relevant uncertainty is eliminated, which is most likely not to have a significant reversal. If there
is a significant financing component in the contract, the Company will determine the transaction price according
to the amount payable in cash when the customer obtains the control right of the commodity. The difference between
the transaction price and the contract consideration will be amortised by the effective interest method during
the contract period. If the interval between the control right transfer and the customer's payment is less than
one year, the Company will not consider the financing component Points.
If one of the following conditions is met, the performance obligation shall be performed within a certain
period of time; otherwise, the performance obligation shall be performed at a certain point of time:
① When the customer performs the contract in the Company, he obtains and consumes the economic benefits
brought by the Company's performance;
② Customers can control the goods under construction during the performance of the contract;
③ The goods produced by the Company in the process of performance have irreplaceable uses, and the Company
has the right to collect money for the performance part that has been completed so far during the whole contract
period.
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For the performance obligations performed within a certain period of time, the Company shall recognize
the revenue according to the performance progress within that period, except that the performance progress cannot
be reasonably determined. The Company determines the performance schedule of providing services according to
the input method. When the progress of performance cannot be reasonably determined, if the cost incurred by the
Company is expected to be compensated, the revenue shall be recognized according to the amount of cost incurred
until the progress of performance can be reasonably determined.
For the performance obligation performed at a certain time point, the Company recognizes the revenue at
the time point when the customer obtains the control right of relevant goods. In determining whether a customer
has acquired control of goods or services, the Company will consider the following signs:
① The Company has the right to receive payment for the goods or services, that is, the customer has the
obligation to pay for the goods;
② The Company has transferred the legal ownership of the goods to the customer, that is, the customer
has the legal ownership of the goods;
③ The Company has transferred the goods in kind to the customer, that is, the customer has possessed the
goods in kind;
④ The Company has transferred the main risks and rewards of the ownership of the goods to the customer,
that is, the customer has obtained the main risks and rewards of the ownership of the goods;
⑤ The product has been accepted by the customer.
Sales return clause
For the sales with sales return clauses, when the customer obtains the control right of the relevant goods,
the Company shall recognize the revenue according to the amount of consideration it is entitled to obtain due
to the transfer of the goods to the customer, and recognize the amount expected to be returned due to the sales
return as the estimated liability; at the same time, the Company shall deduct the estimated cost of recovering
the goods according to the book value of the expected returned goods at the time of transfer（ The balance after
deducting the value of the returned goods is recognized as an asset, that is, the cost of return receivable,
which is carried forward by deducting the net cost of the above assets according to the book value of the transferred
goods at the time of transfer. On each balance sheet date, the Company re estimates the return of future sales
and re measures the above assets and liabilities.
Warranty obligations
According to the contract and legal provisions, the Company provides quality assurance for the goods sold
and the projects constructed. For the guarantee quality assurance to ensure that the goods sold meet the
established standards, the Company conducts accounting treatment in accordance with the accounting standards
for Business Enterprises No. 13 - contingencies. For the service quality assurance which provides a separate
service in addition to guaranteeing that the goods sold meet the established standards, the Company takes it
as a single performance obligation, allocates part of the transaction price to the service quality assurance
according to the relative proportion of the separate selling price of the goods and service quality assurance,
and recognizes the revenue when the customer obtains the service control right. When evaluating whether the quality
assurance provides a separate service in addition to assuring customers that the goods sold meet the established
standards, the Company considers whether the quality assurance is a statutory requirement, the quality assurance
period, and the nature of the Company's commitment to perform the task.
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Customer consideration payable
If there is consideration payable to the customer in the contract, unless the consideration is to obtain
other clearly distinguishable goods or services from the customer, the Company will offset the transaction price
with the consideration payable, and offset the current income at the later time of confirming the relevant income
or paying (or promising to pay) the customer's consideration.
Contractual rights not exercised by customers
If the Company advances sales of goods or services to customers, the amount shall be recognized as liabilities
first, and then converted into income when relevant performance obligations are fulfilled. When the Company does
not need to return the advance payment and the customer may give up all or part of the contract rights, if the
Company expects to have the right to obtain the amount related to the contract rights given up by the customer,
the above amount shall be recognized as income in proportion according to the mode of the customer exercising
the contract rights; otherwise, the Company only has the very low possibility of the customer requiring to perform
the remaining performance obligations The relevant balance of the above liabilities is converted into income.
Contract change
When the construction contract between the Company and the customer is changed:
① If the contract change increases the clearly distinguishable construction service and contract price,
and the new contract price reflects the separate price of the new construction service, the Company will treat
the contract change as a separate contract for accounting;
② If the contract change does not belong to the above-mentioned situation (1), and there is a clear
distinction between the transferred construction service and the non transferred construction service on the
date of contract change, the Company will regard it as the termination of the original contract, and at the same
time, combine the non-performance part of the original contract and the contract change part into a new contract
for accounting treatment;
③ If the contract change does not belong to the above situation (1), and there is no clear distinction
between the transferred construction services and the non transferred construction services on the date of
contract change, the Company will take the contract change part as an integral part of the original contract
for accounting treatment, and the resulting impact on the recognized income will be adjusted to the current income
on the date of contract change.
(2) Specific methods
The specific methods of revenue recognition of the Company are as follows:
① Commodity sales contract
The sales contract between the Company and customers includes the performance obligation of transferring
curtain wall materials, electric energy, etc., which belongs to the performance obligation at a certain time
point.
Revenue from domestic sales of products is recognized at the time when the customer obtains the right of
control of the goods on the basis of comprehensive consideration of the following factors: the Company has
delivered the products to the customer according to the contract, the customer has accepted the goods, the payment
for goods has been recovered or the receipt has been obtained, and the relevant economic benefits are likely
to flow in, the main risks and rewards of the ownership of the goods have been transferred, the legal ownership
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has been transferred;
The following conditions should be met for the recognition of export product revenue: The Company has
declared the product according to the contract, obtained the bill of lading, collected the payment for goods
or obtained the receipt certificate, and the relevant economic benefits are likely to flow in, the main risks
and rewards of the ownership of goods have been transferred, and the legal ownership of goods has been transferred.
② Service contract
The service contract between the Company and its customers includes the performance obligations of metro
platform screen door operation maintenance, curtain wall maintenance and property services. As the Company's
performance at the same time, the customers obtain and consume the economic benefits brought by the Company's
performance, the Company takes it as the performance obligation within a certain period of time and allocates
it equally during the service provision period.
③ Engineering contract
The project contract between the Company and the customer includes the performance obligations of curtain
wall project and metro platform screen door project construction. As the customer can control the goods under
construction in the process of the Company's performance, the Company takes them as the performance obligations
within a certain period of time, and recognizes the income according to the performance progress, except that
the performance progress cannot be reasonably determined. The Company determines the performance schedule of
providing services according to the input method. The performance schedule shall be determined according to the
proportion of the actual contract cost to the estimated total contract cost. On the balance sheet date, the Company
re estimates the progress of completed or completed services to reflect the changes in performance.
④ Real estate sales contract
The income of the Company's real estate development business is recognized when the control of the property
is transferred to the customer. Based on the terms of the sales contract and the legal provisions applicable
to the contract, the control of the property can be transferred within a certain period of time or at a certain
point in time. Only if the goods produced by the Company during the performance of the contract have irreplaceable
uses, and the Company has the right to collect payment for the cumulative performance part that has been completed
during the entire contract period, the performance obligation has been completed during the contract period.
The progress is recognized as revenue within a period of time, and the progress of the completed performance
obligations is determined in accordance with the ratio of the contract costs actually incurred to complete the
performance obligations to the estimated total cost of the contract. Otherwise, the income is recognized when
the customer obtains the physical ownership or legal ownership of the completed property and the Company has
obtained the current right of collection and is likely to recover the consideration. When confirming the contract
transaction price, if the financing component is significant, the Company will adjust the contract commitment
consideration according to the financing component of the contract.
(3)Differences in revenue recognition accounting policies caused by different business models of similar
businesses
There is no difference in revenue recognition due to the adoption of different accounting policies for similar
businesses.
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31. Government subsidy
(1) Government subsidy
Government subsidies are recognized when the following conditions are met:
① Requirements attached to government subsidies;
② The Company can receive government subsidies.
(2) Government subsidy
When a government subsidy is monetary capital, it is measured at the received or receivable amount. None
monetary capital is measured at fair value; if no reliable fair value available, recognized at RMB1.
(3) Recognition of government subsidies
① Assets-related
Government subsidies related to assets are obtained by the Company to purchase, build or formulate in other
manners long-term assets; or subsidies related to benefits. If the asset-related government subsidy is recognized
as deferred gain, should be recorded in gain and loss in the service life. Government subsidy measured at the
nominal amount is accounted into current income account. If the relevant assets are sold, transferred, scrapped
or damaged before the end of their useful life, the unallocated relevant deferred income balance shall be
transferred to the profit and loss of the current period of disposition of the assets.
Gain-related government subsidy should be accounted as follows:
The Company divides government subsidies into assets-related and earnings-related government subsidies.
Gain-related government subsidy should be accounted as follows:
Subsidy that will be used to compensate related future costs or losses should be recognized as deferred
gain and recorded in the gain and loss of the current report and offset related cost;
Subsidy that is used to compensate existing cost or loss should be recorded in the gain and loss of the
current period or offset related cost.
For government subsidies that include both asset-related and income-related parts, separate different parts
for accounting treatment; It is difficult to distinguish between the overall classification of government
subsidies related to benefits.
Government subsidy related to routine operations should be recorded in other gains or offset related cost.
Government subsidy not related to routine operations should be recorded in non-operating income or expense.
③ Policy preferential loan discount
The policy-based preferential loan obtained has interest subsidy. If the government allocates the
interest-subsidy funds to the lending bank, the loan amount actually received will be used as the entry value
of the loan, and the borrowing cost will be calculated based on the loan principal and policy-based preferential
interest rate.
If the government allocates the interest-bearing funds directly to the Group, discount interest will offset
the borrowing costs.
④ Government subsidy refund
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When a confirmed government subsidy needs to be returned, the book value of the asset is adjusted against the
book value of the relevant asset at initial recognition. If there is a related deferred income balance, the book
balance of the related deferred income is written off and the excess is credited to the current profit or loss;
In other cases, it is directly included in the current profit and loss.
32. Differed income tax assets and differed income tax liabilities
The Company uses the temporary difference between the book value of the assets and liabilities on the balance
sheet day and the tax base and the liabilities method to recognize the deferred income tax. 26. Deferred income
tax assets and deferred income tax liabilities
(1) Deferred income tax assets
For deductible temporary discrepancies, deductible losses and tax offsets that can be carried forward for
future years, the impact on income tax is calculated at the estimated income tax rate for the transfer-back period
and the impact is recognized as deferred income tax assets, provided that the Company is likely to obtain future
taxable income for deductible temporary discrepancies, deductible losses and tax offsets.
At the same time, the impact on income tax of deductible temporary discrepancies resulting from the initial
recognition of assets or liabilities in transactions or matters with the following characteristics is inconclusive
as deferred income tax assets:
A. The transaction is not a business combination;
B. the transaction is not a merger and the transaction does not affect the accounting profit or taxable
proceeds;
In the event of temporary discrepancy of deductible investment related to subsidiaries, joint ventures
and joint ventures, and meeting the following two conditions, the amount of impact (talent) on income tax shall
be deemed as deferred income tax assets:
A. Temporary discrepancies are likely to be reversed in the foreseeable future;
B. In the future, it is likely to obtain taxable income that can be used to offset the deductible temporary
differences;
On the balance sheet date, if there is conclusive evidence that sufficient taxable income is likely to
be obtained in the future to offset the deductible temporary differences, the deferred income tax assets that
have not been recognized in the previous period are recognized.
On the balance sheet day, the Company re-examines the book value of the deferred income tax assets. If
it is unlikely to have adequate taxable proceeds to reduce the benefits of the deferred income tax assets, less
the deferred income tax assets’ book value. When there are adequate taxable proceeds, the lessened amount will
be reversed.
(2) Deferred income tax assets
All provisional differences in taxable income of the Company shall be measured on the basis of the estimated
income tax rate for the period of transfer-back and shall be recognized as deferred income tax liabilities, except
that:
At the same time, the impact on income tax of deductible temporary discrepancies resulting the initial
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recognition of assets or liabilities in transactions or matters with the following characteristics is inconclusive
as deferred income tax Liabilities:
A. Initial recognition of goodwill;
B. Initial recognition of goodwill, or of assets or liabilities generated in transactions with the following
features: the transaction is not a merger and the transaction does not affect the accounting profit or taxable
proceeds;
② In the event of temporary discrepancy of deductible investment related to subsidiaries, Joint venture
joint ventures, and meeting the two conditions, the amount of impact (talent) on income tax shall be deemed as
deferred income tax assets:
A. The Company is able to control the time of temporary discrepancy transfers;
B Temporary discrepancies are likely to be reversed in the foreseeable future;
(3) Deferred income tax assets
(1) Deferred income tax liabilities or assets associated with enterprise consolidation
Temporary difference of taxable tax or deductible temporary difference generated by enterprise merger under
non-same control. When deferred income tax liability or deferred income tax asset is recognized, related deferred
income tax expense (or income) is usually adjusted as recognized goodwill in enterprise merger.
② Amount of shares paid and accounted as owners' equity
Except for the adjustment goodwill generated by mergers or deferred income tax related to transactions
or events directly accounted into the owners’ equity, income tax is accounted as income tax expense into the
current gain/loss account. The effects of temporary discrepancy on income tax include the following: Other
integrated benefits such as fair value change of financial assets available for sale, retroactive adjustment
of accounting policy changes or retroactive restatement of accounting error correction discrepancy to adjust
the initial retained income, and mixed financial instruments including liabilities and equity.
③ Compensation for losses and tax deductions
A. Compensable losses and tax deductions from the Company's own operations
Deductible losses refer to the losses calculated and determined in accordance with the provisions of the
tax law that are allowed to be made up with the taxable income of subsequent years. The uncovered losses (deductible
losses) and tax deductions that can be carried forward in accordance with the tax law are treated as deductible
temporary differences. When it is expected that sufficient taxable income is likely to be obtained in the future
period when it is expected to be available to make up for losses or tax deductions, the corresponding deferred
income tax assets are recognized within the limit of the taxable income that is likely to be obtained, while
reducing the current period Income tax expense in the income statement.
B. Compensable uncovered losses of the merged company due to business merger
In a business combination, if the Company obtains the deductible temporary difference of the purchased
party and does not meet the deferred income tax asset recognition conditions on the purchase date, it shall not
be recognized. Within 12 months after the purchase date, if new or further information is obtained indicating
that the relevant conditions on the purchase date already exist, and the economic benefits brought about by the
temporary difference are expected to be deducted on the purchase date, confirm the relevant delivery. Deferred
income tax assets, while reducing goodwill, if the goodwill is not enough to offset, the difference is recognized
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as the current profit and loss; except for the above circumstances, the deferred tax assets related to the business
combination are recognized and included in the current profit and loss.
④Temporary difference caused by merger offset
If there is a temporary difference between the book value of assets and liabilities in the consolidated
balance sheet and the taxable basis of the taxpayer due to the offset of the unrealized internal sales gain or
loss, the deferred income tax asset or the deferred income tax liability is confirmed in the consolidated balance
sheet, and the income tax expense in the consolidated profit statement is adjusted, with the exception of the
deferred income tax related to the transaction or event directly included in the owner's equity and the merger
of the enterprise.
⑤ Share payment settled by equity
If the tax law provides for allowable pre-tax deduction of expenses related to share payment, within the period
for which the cost and expense are recognized in accordance with the accounting standards, the Company shall
calculate the tax basis and temporary discrepancy based on the estimated pre-tax deduction amount at the end
of the accounting period and confirm the relevant deferred income tax if it meets the conditions for confirmation.
Of these, the amount that can be deducted before tax in the future exceeds the cost related to share payment
recognized in accordance with the accounting standards, and the excess income tax shall be directly included
in the owner's equity.
33. Leasing
Applicable from Friday, January 1, 2021
(1) Identification of lease
On the commencement date of the contract, the company evaluates whether the contract is a lease or includes
a lease. If one party in the contract transfers the right to control the use of one or more identified assets
within a certain period in exchange for consideration, the contract is a lease or includes a lease. In order
to determine whether the contract transfers the right to control the use of the identified assets within a certain
period, the company evaluates whether the customers in the contract have the right to obtain almost all the economic
benefits arising from the use of the identified assets during the use period, and have the right to dominate
the use of the identified assets during the use period.
(2) Separate identification of lease
If the contract includes multiple separate leases at the same time, the company will split the contract
and conduct accounting treatment for each separate lease. If the following conditions are met at the same time,
the right to use the identified asset constitutes a separate lease in the contract: ① the lessee can profit
from using the asset alone or together with other easily available resources; ② The asset is not highly dependent
or highly related to other assets in the contract.
(3) Accounting treatment method of the Company as lessee
On the beginning date of the lease term, the Company recognizes the lease with a lease term of no more
than 12 months and excluding the purchase option as a short-term lease; When a single leased asset is a brand-new
asset, the lease with lower value is recognized as a low value asset lease. If the Company sublets or expects
to sublet the leased assets, the original lease is not recognized as a low value asset lease.
For all short-term leases and low value asset leases, the Company will record the lease payment amount
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into the relevant asset cost or current profit and loss according to the straight-line method (or other systematic
and reasonable methods) in each period of the lease term.
In addition to the above short-term leases and low value asset leases with simplified treatment, the Company
recognizes the right to use assets and lease liabilities for the lease on the beginning date of the lease term.
The recognition and measurement of right of use assets and lease liabilities are detailed in Chapter X, V. Important
accounting policies and accounting estimates. 22. Right of use assets and 28. Lease liabilities.
(4) Accounting treatment method of the Company as lessor
On the lease commencement date, the Company classifies leases that have substantially transferred almost
all the risks and rewards related to the ownership of the leased assets as financial leases, and all other leases
are operating leases.
① Operating lease
During each period of the lease term, the Company recognizes the lease receipts as rental income according
to the straight-line method (or other systematic and reasonable methods), and the initial direct expenses incurred
are capitalized, amortized on the same basis as the recognition of rental income, and included in the current
profit and loss by stages. The variable lease payments obtained by the Company related to operating leases that
are not included in the lease receipts are included in the current profits and losses when actually incurred.
② Finance lease
On the lease beginning date, the Company recognizes the financial lease receivables according to the net
amount of the lease investment (the sum of the unsecured residual value and the present value of the lease receipts
not received on the lease beginning date discounted according to the lease embedded interest rate), and terminates
the recognition of the financial lease assets. During each period of the lease term, the Company calculates and
recognizes the interest income according to the interest rate embedded in the lease.
The amount of variable lease payments obtained by the Company that are not included in the measurement
of net lease investment shall be included in the current profit and loss when actually incurred.
(5) Accounting treatment of lease change
① Change of lease as a separate lease
If the lease changes and meets the following conditions at the same time, the Company will treat the lease
change as a separate lease for accounting: a. the lease change expands the lease scope by increasing the use
right of one or more leased assets; B. The increased consideration is equivalent to the amount adjusted according
to the conditions of the contract at the separate price for most of the expansion of the lease scope.
② The lease change is not treated as a separate lease
A. The Company as lessee
On the effective date of the lease change, the Company reconfirmed the lease term and discounted the changed
lease payment at the revised discount rate to re-measure the lease liability. When calculating the present value
of the lease payment after the change, the implicit interest rate of the lease during the remaining lease period
shall be used as the discount rate; If it is impossible to determine the implicit interest rate of the lease
for the remaining lease period, the incremental loan interest rate on the effective date of the lease change
shall be used as the discount rate.
The impact of the above lease liability adjustment shall be accounted for according to the following
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circumstances:
If the lease scope is reduced or the lease term is shortened due to the lease change, the book value of
the right to use assets shall be reduced, and the relevant gains or losses of partial or complete termination
of the lease shall be included in the current profits and losses;For other lease changes, the book value of the
right to use assets shall be adjusted accordingly.
The Company as leasor
If the operating lease is changed, the Company will treat it as a new lease for accounting from the effective
date of the change, and the amount of lease receipts received in advance or receivable related to the lease before
the change is regarded as the amount of new lease receipts.
If the change of financial lease is not accounted for as a separate lease, the Company will deal with the
changed lease under the following circumstances: if the change of lease takes effect on the lease commencement
date and the lease will be classified as an operating lease, the Company will account for it as a new lease from
the effective date of lease change, and take the net lease investment before the effective date of lease change
as the book value of leased assets; If the lease change takes effect on the lease commencement date, the lease
will be classified as a financial lease, and the Company will conduct accounting treatment in accordance with
the provisions on modifying or renegotiating the contract.
(6) Sale and lease-back
The Company assesses and determines whether the asset transfer in the sale and leaseback transaction is
a sale in accordance with the provisions of 30. Income in Chapter X, V, Important accounting policies and accounting
estimates.
① The Company as seller (lessee)
If the asset transfer in the sale and leaseback transaction does not belong to sales, the Company will
continue to recognize the transferred assets, recognize a financial liability equal to the transfer income, and
conduct accounting treatment for the financial liability in accordance with 9。 Financial instruments in Chapter
X, V, Important accounting policies and accounting estimates. If the asset transfer belongs to sales, the Company
measures the right to use assets formed by sale and leaseback according to the part of the book value of the
original assets related to the right to use obtained by leaseback, and only recognizes the relevant gains or
losses on the rights transferred to the lessor.
② The Company as buyer (lessor)
If the asset transfer in the sale and leaseback transaction does not belong to sales, the company does
not recognize the transferred asset, but recognizes a financial asset equal to the transfer income, and carries
out accounting treatment on the financial asset in accordance with 9. Financial instruments in Chapter X, V.
Important accounting policies and accounting estimates. If the asset transfer belongs to sales, the Company shall
conduct accounting treatment for asset purchase and asset lease in accordance with other applicable accounting
standards for business enterprises.
The following accounting policies for operating leases and financial leases are applicable to 2020 and
before
The Company transfers all the risks and rewards attached to the asset at substantially transferred to the
lessee, it is recognized as financial leasing, and the others are operational leasing.
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(1) Accounting of operational leasing
① The Company as the leasor: Rentals from operational leasing are recognized as current gains on straight
basis to the periods of leasing. Where the lessor provides a lease-free period, the total rent shall be apportioned
within the whole lease-free period without deducting the lease-free period according to the straight line method
or other reasonable method, and the rent-free period shall be recognized as well as the corresponding liabilities.
People If the charterer undertakes certain expenses, the Company shall distribute the rent Expense balance
deducted from the total rent income during the lease term.
Initial direct expenses are recorded to current income account. In the event of an agreement or rent, the
current profit and loss shall be included in the actual occurrence.
② When the Company is the operating lessor, the rent received shall be recognized as income within the
lease term by the straight line method. Where the lessor provides a lease-free period, the total rent shall be
apportioned within the whole lease-free period without deducting the lease-free period according to the straight
line method or other reasonable method, and the rent-free period shall be recognized as well as the corresponding
liabilities. If the charterer undertakes certain expenses, the Company shall distribute the rent income balance
deducted from the total rent income during the lease term.
Initial direct expenses are recorded to current income account. Larger amounts shall be capitalized and
included in current profits and losses in installments on the same basis as the confirmed rental income during
the entire operating lease period. In the event of an agreement or rent, the current profit and loss shall be
included in the actual occurrence.
The Company does not have financial leasing business.
34. Other significant accounting policies and estimates
(1) Measurement of Fair Value
Fair value refers to the amount of asset exchange or liabilities settlement by both transaction parties
familiar with the situation in a fair deal on a voluntary basis.
The Company measures the fair value of related assets or liabilities at the prices in the main market.
If there is no major market, the Company measures the fair value of the relevant assets or liabilities at the
most favorable market prices. The Group uses assumptions that market participants use to maximize their economic
benefits when pricing the asset or liability.
The main market refers to the market with the highest transaction volume and activity of the related assets
or liabilities. The most favorable market means the market that can sell the related assets at the highest amount
or transfer the related liabilities at the lowest amount after considering the transaction cost and transportation
cost.
For financial assets or liabilities in an active market, The Company determines their fair value based
on quotations in the active market. If there is no active market, the Company uses evaluation techniques to
determine the fair value.
For the measurement of non-financial assets at fair value, the ability of market participants to use the
assets for optimal purposes to generate economic benefits, or the ability to sell the assets to other market
participants that can be used for optimal purposes to generate economic benefits.
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① Valuation technology
The Company adopts valuation techniques that are applicable in the current period and are supported by
sufficient data and other information. The valuation techniques used mainly include market method, income method
and cost method. The Company uses a method consistent with one or more of the valuation techniques to measure
fair value. If multiple valuation techniques are used to measure fair value, the reasonableness of each valuation
result shall be considered, and the fair value shall be selected as the most representative of fair value under
the current circumstances. The amount of value is regarded as fair value.
The Company equipment are applicable in the current circumstances and have sufficient available data and
other information to support the use of the relevant observable input values prioritized. Unobservable input
values are used only when the observable input value cannot be obtained or is not feasible. Observable input
values are input values that can be obtained from market data. The Group uses assumptions that market participants
use to maximize their economic benefits when pricing the asset or liability. Non-observable input values are
input values that cannot be obtained from market data. The input value is obtained based on the best information
available on assumptions used by market participants in pricing the relevant asset or liability.
②Fair value hierarchy
This company divides the input value used in fair value measurement into three levels, and first uses the first
level input value, then uses the second level input value, and finally uses the third level input value. First
level: quotation of same assets or liabilities in an active market (unadjusted) The second level input value
is a directly or indirectly observable input value of the asset or liability in addition to the first level input
value. The input value of the third level is the unobservable input value of the related asset or liability.
(2) Accounting of hedging
(2.1) Classification of inventories
The Company's hedge is a cash flow hedge.
Cash flow hedging refers to the hedging of cash flow risk. The change in cash flow is derived from specific
risks associated with recognized assets or liabilities, expected transactions that are likely to occur, or with
respect to the components of the above-mentioned project and will affect the profits and losses of the enterprise.
(2.2) Hedging tools and hedged projects
Hedging means a financial instrument designated by the Company for the purpose of hedging, whose fair value
or cash flow variation is expected to offset the fair value or cash flow variation of the hedged item, including:
① Financial liabilities measured at fair value with variations accounted into current income account
Check-out options can only be used as a hedging tool if the option is hedged, including those embedded in a hybrid
contract. Derivatives embedded in a hybrid contract but not split cannot be used as separate hedging tools.
② Non-derivative financial assets or non-derivative financial liabilities that are measured at fair value
and whose changes are included in the current profit and loss, but designated as fair value and whose changes
are included in the current profit and loss, and their own credit risk changes caused by changes in fair value
except for financial liabilities included in other comprehensive income.
Own equity instruments are not financial assets or financial liabilities and cannot be used as hedging
instruments.
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A hedged item refers to an item that exposes the Company to the risk of changes in fair value or cash flow
and is designated as the hedged object and can be reliably measured. The Company designates the following
individual projects, project portfolios or their components as hedged projects:
① Confirmed assets or liabilities.
② Confirmed commitments that have not yet been confirmed. Confirmed commitment refers to a legally binding
agreement to exchange a specific amount of resources at an agreed price on a specific date or period in the future.
③ Expected transactions that are likely to occur. Anticipated transactions refer to transactions that
have not yet been committed but are expected to occur.
④ Net investment in overseas operations.
The above-mentioned project components refer to the parts that are less than the overall fair value or
cash flow changes of the project. The Company designates the following project components or their combinations
as hedged items:
① The part of the change in fair value or cash flow (risk component) that is only caused by one or more
specific risks in the overall fair value or cash flow changes of the project. According to the assessment in
a specific market environment, the risk component should be able to be individually identified and reliably
measured. The risk component also includes the part where the fair value or cash flow of the hedged item changes
only above or below a specific price or other variables.
② One or more selected contractual cash flows.
③ The component of the nominal amount of the project, that is, the specific part of the whole amount or
quantity of the project, may be a certain proportion of the whole project, or may be a certain level of the whole
project. If a certain level includes early repayment rights and the fair value of the early repayment rights
is affected by changes in the risk of the hedge, the level shall not be designated as the hedged item of the
fair value hedge, but in the measurement of the hedged item except when the fair value has included the influence
of the prepayment right.
(2.3) Evaluation of hedging relationship
When the hedging relationship is initially specified, the Group officially specifies the related hedging
relationships with official documents recording the hedging relationships, risk management targets and hedging
strategies. This document sets out the hedging tools, hedged items, the nature of hedged risks, and the Company's
assessment of hedged effectiveness. Hedging means a financial instrument designated by the Company for the purpose
of hedging, whose fair value or cash flow variation is offset the fair value or cash flow variation of the hedged
item, including: Such hedges are continuously evaluated on and after the initial specified date to meet the
requirements for hedging validity.
If the hedging instrument has expired, been sold, the contract is terminated or exercised (but the extension
or replacement as part of the hedging strategy is not treated as expired or contract termination), or the risk
management objective changes, resulting in hedging The relationship no longer meets the risk management objectives,
or the economic relationship between the hedged item and the hedging instrument no longer exists, or the impact
of credit risk begins to dominate in the value changes caused by the economic relationship between the hedged
item and the hedging instrument, or when the hedge no longer meets the other conditions of the hedge accounting
method, the Company terminates the use of hedge accounting.
If the hedging relationship no longer meets the requirements for hedging effectiveness due to the hedging
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ratio, but the risk management objective of the designated hedging relationship has not changed, the Company
shall rebalance the hedging relationship.
(2.4) Revenue the of revenue recognition and measurement
If the conditions for applying hedge accounting method are met, it shall be handled according to the following
methods:
Cash flow hedging
The part of hedging tool gains or losses that is valid for hedging is recognized as other comprehensive
income as a cash flow hedging reserve, and the part that is invalid for hedging (that is, other gains or losses
after deducting other comprehensive income), are counted into the current profit and loss. The amount of cash
flow hedging reserve is determined according to the lower of the absolute amounts of the following two items:
①accumulated gains or losses of hedging instruments since the hedging. The amount in the effective arbitrage
is recognized by the accumulative gains or losses from the starting of arbitrage and accumulative changes to
the current value of future forecast cash flows from the start of arbitrage.
If the expected transaction of the hedged asset is subsequently recognized as a non-financial asset or
non-financial liability, or if the expected transaction of the non-financial asset or non-financial liability
forms a defined commitment to the applicable fair value hedge accounting, the amount of the cash flow hedge reserve
originally recognized in the other consolidated income is transferred out to account for the initial recognized
amount of the asset or liability. For the remaining cash flow hedges, during the same period when the expected
cash flow to be hedged affects the profit and loss, if the expected sales occur, the cash flow hedge reserve
recognized in other comprehensive income is transferred out and included in the current profit and loss.
(3) Repurchase of the Company’s shares
(3.1) In the event of a reduction in the Company's share capital as approved by legal procedure, the Company
shall reduce the share capital by the total amount of the written-off shares, adjust the owner's equity by the
difference between the price paid by the purchased stocks (including transaction costs) and the total amount
of the written-off shares, offset the capital reserve (share capital premium), surplus reserve and undistributed
profits in turn; A portion of a capital reserve (share capital premium) that is less than the total face value
and less than the total face value.
(3.2) The total expenditure of the repurchase shares of the Company, which is managed as an inventory share
before they are cancelled or transferred, is converted to the cost of the inventory shares.
(3.3) Increase in the capital reserve (capital premium) at the time of transfer of an inventory unit, the
portion of the transfer income above the cost of the inventory unit; Lower than the inventory stock cost, the
capital reserve (share capital premium), surplus reserve, undistributed profits in turn.
(4) Significant accounting judgment and estimate
The Company continuously reviews significant accounting judgment and estimate adopted for the reasonable
forecast of future events based on its historical experience and other factors. Significant accounting judgment
and assumptions that may lead to major adjustment of the book value of assets and liabilities in the next accounting
year are listed as follows:
Classification of financial assets
The major judgements involved in the classification of financial assets include the analysis of business
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model and contract cash flow characteristics.
The company determines the business mode of managing financial assets at the level of financial asset
portfolio, taking into account such factors as how to evaluate and report financial asset performance to key
managers, the risks that affect financial asset performance and how to manage it, and how to obtain remuneration
for related business managers.
When the company assesses whether the contractual cash flow of financial assets is consistent with the
basic borrowing arrangement, there are the following main judgments: whether the principal may change due to
early repayment and other reasons during the duration of the period or the amount of change; whether the interest
Including the time value of money, credit risk, other basic borrowing risks, and consideration of costs and profits.
For example, does the amount paid in advance reflect only the unpaid principal and the interest based on the
unpaid principal, as well as the reasonable compensation paid for early termination of the contract.
Measurement of expected credit losses of accounts receivable
The Company calculates the expected credit loss of accounts receivable through the risk exposure of accounts
receivable default and the expected credit loss rate, and determines the expected credit loss rate based on the
default probability and the default loss rate. When determining the expected credit loss rate, the Company uses
internal historical credit loss experience and other data, combined with current conditions and forward-looking
information to adjust the historical data. When considering forward-looking information, the indicators used
by the Company include the risks of economic downturn, changes in the external market environment, technological
environment, and customer conditions. The Company regularly monitors and reviews assumptions related to the
calculation of expected credit losses.
Deferred income tax assets
If there is adequate taxable profit to deduct the loss, the deferred income tax assets should be recognized
by all the unused tax loss. This requires the management to make a lot of judgment to forecast the time and amount
of future taxable profit and determine the amount of the deferred tax assets based on the taxation strategy.
Income recognition
The Company's revenue from providing curtain wall construction and metro platform screen door installation
services is recognized over a period of time. The recognition of the income and profit of such engineering
installation services depends on the Company's estimation of the contract results and performance progress. If
the actual amount of total revenue and total cost is higher or lower than the estimated value of the management,
it will affect the amount of revenue and profit recognition of the Company in the future.
Engineering contract
The management shall make relevant judgment to confirm the income and expenses of project contracting
business according to the performance progress. If losses are expected to occur in the project contract, such
losses shall be recognized as current expenses. The management of the Company estimates the possible losses
according to the budget of the project contract. The Company determines the transaction price according to the
terms of the contract and in combination with previous customary practices, and considers the influence of variable
consideration, major financing components in the contract and other factors. During the performance of the
contract, the Company continuously reviews the estimated total contract revenue and the estimated total contract
cost. When the initial estimate changes, such as contract changes, claims and awards, the estimated total contract
revenue and the estimated total contract cost are revised. When the estimated total contract cost exceeds the
total contract revenue, the main business cost and estimated liabilities shall be recognized according to the
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loss contract to be executed.
Estimate of fair value
The Company uses fair value to measure investment real estate and needs to estimate the fair value of
investment real estate at least quarterly. This requires the management to reasonably estimate the fair value
of the investment real estate with the help of valuation experts.
Development cost
For property that has been handed over with income recognized, but whose public facilities have not been
constructed or not been completed, the management will estimate the development cost for the part that has not
been started according to the budget to reflect the operation result of the property sales.
35. Major changes in accounting policies and estimates
(1) Changes in accounting policies
√ Applicable □ Inapplicable
Account policy changes and reasons:
(1.1) Implementation of new lease guidelines
On December 7, 2018, the Ministry of Finance issued the accounting standards for Business Enterprises No.
21 - leasing (hereinafter referred to as the "new leasing standards"). The Company has implemented the new leasing
standards since January 1, 2021 and adjusted the relevant contents of accounting policies. See 33. Lease in Chapter
X, V. Changes in important accounting policies and accounting estimates.
For contracts existing before the first execution date, the Company chooses not to re-evaluate whether
they are leases or include leases on the first execution date.
For contracts signed or changed after the first execution date, the Company evaluates whether the contract
is a lease or includes a lease according to the definition of lease in the new lease standards.
① The Company as leasee
The Company chooses the cumulative impact of the first implementation of the new leasing standards to adjust
the amount of retained earnings and other relevant items in the financial statements at the beginning of the
year of the first implementation (i.e. January 1, 2021), and does not adjust the information of comparable periods:
A. For the financial lease before the first execution date, the Company measures the right of use assets
and lease liabilities respectively according to the original book value of the financial lease in assets and
the financial lease payable on the first execution date;
B. For the operating lease before the first execution date, the Company measures the lease liability on
the first execution date according to the remaining lease payment and the present value discounted by the lessee's
incremental loan interest rate on the first execution date, and measures the right to use asset according to
the amount equal to the lease liability and prepaid rent for each lease;
C. On the first implementation date, the Company conducts impairment test on the right to use assets and
carries out corresponding accounting treatment in accordance with 24. Impairment of long-term assets in Chapter
X, V. Important accounting policies and accounting estimates.
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The operating lease of leased assets belonging to low value assets before the first execution date of the
Company adopts simplified treatment, and the right to use assets and lease liabilities are not recognized. In
addition, the Company adopts one or more of the following simplified treatments for operating leases before the
first execution date:
Leases to be completed within 12 months after the first execution date shall be treated as short-term leases;
When measuring lease liabilities, leases with similar characteristics adopt the same discount rate;
The measurement of right of use assets does not include initial direct expenses;
If there is an option to renew or terminate the lease, the Company determines the lease term according
to the actual exercise of the option before the first execution date and other latest conditions;
As an alternative to the impairment test of right of use assets, the Company evaluates whether the contract
including lease is a loss contract before the first execution date according to the accounting standards for
Business Enterprises No. 13 - contingencies, and adjusts the right of use assets according to the amount of loss
reserves recorded in the balance sheet before the first execution date;
If a lease change occurs before the first execution date, the Company will conduct accounting treatment
according to the final arrangement of the lease change.
② The Company as leasor
For subleases classified as operating leases before the first execution date and still existing after the
first execution date, the company, as a sublease, reassesses and classifies them on the first execution date
based on the remaining contract term and terms of the original lease and sublease. In addition, the Company has
not adjusted the lease as the lessor in accordance with the connection provisions, but has conducted accounting
treatment in accordance with the new lease standards since the first implementation date.
③ Sale and leaseback transaction
For the sale and leaseback transactions existing before the first execution date, the Company will not
re-evaluate whether the asset transfer meets the provisions of 30. Accounting treatment of income as sales in
Chapter X, V. Important accounting policies and accounting estimates on the first execution date. For the sale
and leaseback transactions that should be accounted for as sales and financial leases before the first execution
date, the Company, as the seller (lessee), will account for leaseback in the same way as other financial leases,
and continue to amortize relevant deferred income or loss within the lease term. For the sale and leaseback
transactions that are accounted for as sales and operating leases before the first execution date, the Company,
as the seller (lessee), shall account for the leaseback in the same way as other operating leases, and adjust
the right to use assets according to the relevant deferred income or loss recorded in the balance sheet before
the first execution date.
Due to the implementation of the new lease standards, the consolidated financial statements of the Company
adjusted the use right assets of RMB5,844,154.69 and lease liabilities of RMB5,844,154.69 on January 1, 2021
accordingly. Relevant adjustments have no impact on shareholders' equity in the Company's consolidated financial
statements. Due to the implementation of the new lease standard, there is no impact on the financial statements
of the parent company of the Company.
(1.2) Implement the interpretation of accounting standards for Business Enterprises No. 14
On January 26, 2021, the Ministry of Finance issued the interpretation of accounting standards for Business
Enterprises No. 14 (CAI Kuai [2021] No. 1) (hereinafter referred to as "Interpretation No. 14"), which shall
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Annual Report 2021 of China Fangda Group Co., Ltd.
come into force as of the date of promulgation. The Company implemented Interpretation No. 14 on January 26,
2021. Explanation No. 14 has no significant impact on the Company.
(1.3) Implement the provisions of "relevant presentation of centralized fund management" in the
interpretation of accounting standards for Business Enterprises No. 15
On December 30, 2021, the Ministry of Finance issued the interpretation of accounting standards for Business
Enterprises No. 15 (CAI Kuai [2021] No. 35) (hereinafter referred to as "Interpretation No. 15"), in which the
content of "relevant presentation of centralized fund management" shall be implemented from the date of
promulgation, and the Company shall implement the provision from December 30, 2021, which has no significant
impact on the Company.
(2) Changes in major accounting estimates
□ Applicable √ Inapplicable
(3) The first implementation of the new financial instruments guidelines, new lease standards, adjustments the
first implementation of the financial statements at the beginning of the year 2021
√ Applicable □ Inapplicable
Whether to adjust the balance sheet accounts at the beginning of the year
√ Yes □ No
Consolidated Balance Sheet
In RMB
Item Thursday, December 31, 2020 Friday, January 1, 2021 Adjustment
Current asset:
Monetary capital 1,463,974,162.45 1,463,974,162.45
Settlement provision
Outgoing call loan
Transactional financial
14,382,896.04 14,382,896.04
assets
Derivative financial
6,974,448.22 6,974,448.22
assets
Notes receivable 207,165,063.97 207,165,063.97
Account receivable 616,960,252.54 616,960,252.54
Receivable financing 10,727,129.28 10,727,129.28
Prepayment 23,940,064.88 23,940,064.88
Insurance receivable
Reinsurance receivable
Provisions of
Reinsurance contracts
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receivable
Other receivables 162,284,588.59 162,284,588.59
Including: interest
receivable
Dividend
receivable
Repurchasing of
financial assets
Inventory 837,831,790.88 837,831,790.88
Contract assets 1,433,963,300.50 1,433,963,300.50
Assets held for sales
Non-current assets due
141,681,778.35 141,681,778.35
in 1 year
Other current assets 233,395,117.10 233,395,117.10
Total current assets 5,153,280,592.80 5,153,280,592.80
Non-current assets:
Loan and advancement
provided
Debt investment
Other debt investment
Long-term receivables
Long-term share equity
55,902,377.95 55,902,377.95
investment
Investment in other
17,628,307.59 17,628,307.59
equity tools
Other non-current
5,025,186.16 5,025,186.16
financial assets
Investment real estate 5,634,648,416.52 5,634,648,416.52
Fixed assets 483,217,323.75 483,217,323.75
Construction in process 168,626,803.01 168,626,803.01
Productive biological
assets
Gas & petrol
Use right assets 5,844,154.69 5,844,154.69
Intangible assets 77,201,610.87 77,201,610.87
R&D expense
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Goodwill
Long-term amortizable
4,581,487.32 4,581,487.32
expenses
Deferred income tax
186,689,823.51 186,689,823.51
assets
Other non-current assets 104,821,461.55 104,821,461.55
Total of non-current assets 6,738,342,798.23 6,744,186,952.92 5,844,154.69
Total of assets 11,891,623,391.03 11,897,467,545.72 5,844,154.69
Current liabilities
Short-term loans 1,048,250,327.62 1,048,250,327.62
Loans from Central
Bank
Call loan received
Transactional financial
liabilities
Derivative financial
915,234.93 915,234.93
liabilities
Notes payable 866,224,515.42 866,224,515.42
Account payable 1,282,682,418.40 1,282,682,418.40
Prepayment received 1,544,655.62 1,544,655.62
Contract liabilities 265,487,113.12 265,487,113.12
Selling of repurchased
financial assets
Deposit received and
held for others
Entrusted trading of
securities
Entrusted selling of
securities
Employees' wage
60,894,196.78 60,894,196.78
payable
Taxes payable 360,295,879.85 360,295,879.85
Other payables 153,635,067.86 153,635,067.86
Including: interest
payable
Dividend
6,000,000.00 6,000,000.00
payable
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Fees and commissions
payable
Reinsurance fee payable
Liabilities held for sales
Non-current liabilities
103,359,833.57 103,359,833.57
due in 1 year
Other current liabilities 107,688,425.69 107,688,425.69
Total current liabilities 4,250,977,668.86 4,250,977,668.86
Non-current liabilities:
Insurance contract
provision
Long-term loans 1,099,411,462.35 1,099,411,462.35
Bond payable
Including: preferred
stock
Perpetual
bond
Lease liabilities 5,844,154.69 5,844,154.69
Long-term payable
Long-term employees'
wage payable
Anticipated liabilities 33,425,500.13 33,425,500.13
Deferred earning 9,168,492.17 9,168,492.17
Deferred income tax
1,038,091,182.43 1,038,091,182.43
liabilities
Other non-current
liabilities
Total of non-current
2,180,096,637.08 2,185,940,791.77 5,844,154.69
liabilities
Total liabilities 6,431,074,305.94 6,436,918,460.63 5,844,154.69
Owner's equity:
Share capital 1,088,278,951.00 1,088,278,951.00
Other equity tools
Including: preferred
stock
Perpetual
bond
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Capital reserves 20,459,588.40 20,459,588.40
Less: Shares in stock 42,748,530.12 42,748,530.12
Other miscellaneous
2,078,167.63 2,078,167.63
income
Special reserves
Surplus reserve 106,783,436.96 106,783,436.96
Common risk provisions
Retained profit 4,217,843,325.77 4,217,843,325.77
Total of owner's equity
5,392,694,939.64 5,392,694,939.64
belong to the parent company
Minor shareholders'
67,854,145.45 67,854,145.45
equity
Total of owners' equity 5,460,549,085.09 5,460,549,085.09
Total of liabilities and
11,891,623,391.03 11,897,467,545.72 5,844,154.69
owner's interest
About the adjustment
On January 1, 2021, for the operating lease before the first execution date, the Company adopts the present value after discounting
the incremental loan interest rate before the first execution date to measure the lease liability, with an amount of RMB5,844,154.69;
The right to use assets are measured according to the amount equal to the lease liabilities and necessary adjustments are made
according to the prepaid rent, and the amount is RMB5,844,154.69.
Balance Sheet of the Parent Company
In RMB
Item Thursday, December 31, 2020 Friday, January 1, 2021 Adjustment
Current asset:
Monetary capital 204,828,995.78 204,828,995.78
Transactional financial
assets
Derivative financial
assets
Notes receivable
Account receivable 885,849.08 885,849.08
Receivable financing
Prepayment 1,323,361.34 1,323,361.34
Other receivables 1,156,802,204.91 1,156,802,204.91
Including: interest
receivable
Dividend
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receivable
Inventory
Contract assets
Assets held for sales
Non-current assets due
in 1 year
Other current assets 1,071,138.13 1,071,138.13
Total current assets 1,364,911,549.24 1,364,911,549.24
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term share equity
1,196,831,253.00 1,196,831,253.00
investment
Investment in other
16,392,331.44 16,392,331.44
equity tools
Other non-current
30,000,001.00 30,000,001.00
financial assets
Investment real estate 334,498,436.00 334,498,436.00
Fixed assets 65,157,481.98 65,157,481.98
Construction in process
Productive biological
assets
Gas & petrol
Use right assets
Intangible assets 1,521,975.72 1,521,975.72
R&D expense
Goodwill
Long-term amortizable
687,202.16 687,202.16
expenses
Deferred income tax
26,592,617.26 26,592,617.26
assets
Other non-current assets
Total of non-current assets 1,671,681,298.56 1,671,681,298.56
Total of assets 3,036,592,847.80 3,036,592,847.80
Current liabilities
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Short-term loans 491,503,263.89 491,503,263.89
Transactional financial
liabilities
Derivative financial
liabilities
Notes payable
Account payable 606,941.85 606,941.85
Prepayment received 927,674.32 927,674.32
Contract liabilities
Employees' wage
3,440,073.04 3,440,073.04
payable
Taxes payable 2,993,196.12 2,993,196.12
Other payables 28,068,648.70 28,068,648.70
Including: interest
payable
Dividend
payable
Liabilities held for sales
Non-current liabilities
due in 1 year
Other current liabilities
Total current liabilities 527,539,797.92 527,539,797.92
Non-current liabilities:
Long-term loans
Bond payable
Including: preferred
stock
Perpetual
bond
Lease liabilities
Long-term payable
Long-term employees'
wage payable
Anticipated liabilities
Deferred earning
Deferred income tax 73,837,511.85 73,837,511.85
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liabilities
Other non-current
liabilities
Total of non-current
73,837,511.85 73,837,511.85
liabilities
Total liabilities 601,377,309.77 601,377,309.77
Owner's equity:
Share capital 1,088,278,951.00 1,088,278,951.00
Other equity tools
Including: preferred
stock
Perpetual
bond
Capital reserves 360,835.52 360,835.52
Less: Shares in stock 42,748,530.12 42,748,530.12
Other miscellaneous
-371,129.71 -371,129.71
income
Special reserves
Surplus reserve 106,783,436.96 106,783,436.96
Retained profit 1,282,911,974.38 1,282,911,974.38
Total of owners' equity 2,435,215,538.03 2,435,215,538.03
Total of liabilities and
3,036,592,847.80 3,036,592,847.80
owner's interest
About the adjustment:
The implementation of the new leasing standards for the first time has no impact on the balance sheet of the parent company.
(4) Description of the 2021 first implementation of the new lease standard retrospective adjustment of the
previous period comparison data
□ Applicable √ Inapplicable
VI. Taxation
1. Major taxes and tax rates
Tax Tax basis Tax rate
VAT Taxable income 3%, 5%, 6%, 9%, 13%
City maintenance and construction tax Taxable turnover 1%, 5%, 7%
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Enterprise income tax Taxable income See the following table
Education surtax Taxable turnover 3%
Local education surtax Taxable turnover 2%
Tax rates applicable for different tax payers
Tax payer Income tax rate
The Company 25%
Shenzhen Fangda Jianke Co., Ltd. (hereinafter Fangda Jianke) 15%
Fangda Zhichuang Technology Co., Ltd. (renamed Fangda Zhiyuan Technology 15%
Co., Ltd. in January 2022, hereinafter referred to as Fangda Zhichuang
Technology Co., Ltd.)
Fangda New Material (Jiangxi) Co., Ltd. (hereinafter Fangda Jiangxi New 15%
Material)
Dongguan Fangda New Material Co., Ltd. (hereinafter Fangda Dongguan New 15%
Material)
Chengdu Fangda Construction Technology Co., Ltd. (hereinafter Fangda 15%
Chengdu Technology)
Shenzhen Fangda Property Development Co., Ltd. (hereinafter Fangda Property 25%
Development)
Shenzhen Fangda New Energy Co., Ltd. (hereinafter Fangda New Energy) 25%
Shenzhen Fangda Property Development Co., Ltd. (hereinafter Fangda Property 25%
Development)
Jiangxi Fangda Property Development Co., Ltd. (hereinafter Fangda Jiangxi 25%
Property Development)
Pingxiang Fangda Luxin New Energy Co., Ltd. (hereinafter Fangda Luxin New 25%
Energy)
Nanchang Xinjian Fangda New Energy Co., Ltd. (hereinafter Fangda Xinjian 25%
New Energy)
Dongguan Fangda New Energy Co., Ltd. (hereinafter Fangda Dongguan New 25%
Energy)
Shenzhen Qianhai Kechuangyuan Software Co., Ltd (hereinafter Kechuangyuan 25%
Software)
Fangda Zhichuang Technology (Hong Kong) Co., Ltd, (Fangda Zhichuang Hong 16.50%
Kong)
Fangda Zhichuang Technology (Wuhan) Co., Ltd, (Fangda Wuhan Zhichuang) 25%
Fangda Zhichuang Technology (Nanchang) Co., Ltd, (Fangda Nanchang 25%
Zhichuang)
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Fangda Zhichuang Technology (Dongguan) Co., Ltd, (Fangda Dongguan 25%
Zhichuang)
Fangda Zhichuang Technology (Singapore) Co., Ltd. 17%
Shihui International Holding Co., Ltd. (hereinafter Fangda Shihui International) 16.50%
Shenzhen Hongjun Investment Co., Ltd. (hereinafter Fangda Hongjun 25%
Investment)
Fangda Australia Pty Ltd (hereinafter Fangda Australia) 30%
Shanghai Fangda Zhijian Technology Co., Ltd. (hereinafter referred to as Fangda 15%
Shanghai Zhijian company)
Shenzhen Fangda Cloud Rail Technology Co., Ltd. (hereinafter Fangda Cloud 25%
Rail)
Shanghai Fangda Jianzhi Technology Co., Ltd. (hereinafter Fangda Shanghai 25%
Jianzhi)
Shenzhen Zhongrong Litai Investment Co. Ltd. (Zhongrong Litai) 25%
Chengdu Fangda Curtain Wall Technology Co., Ltd. (hereinafter Fangda 25%
Chengdu Curtain Wall)
Fangda Southeast Asia Co., Ltd. (hereinafter Fangda Southeast Asia) 20%
Shenzhen Xunfu Investment Co., Ltd. (hereinafter referred to as Fangda Xunfu 25%
Investment)
Shenzhen Lifu Investment Co., Ltd. (hereinafter referred to as Fangda Lifu 25%
Investment)
Shenzhen Fangda Investment Partnership (Limited Partnership) (hereinafter Inapplicable
referred to as Fangda Investment)
Fangda Jianke (Hong Kong) Co., Ltd. (hereinafter Fangda Jianke Hong Kong) 16.50%
Shenzhen Yunzhu Industrial Co., Ltd. (Hereinafter Yunzhu Industrial) 15%
Shenzhen Yunzhu Testing Technology Co., Ltd. (Hereinafter Fangda Yunzhu 25%
Testing)
2. Tax preference
(1) On December 23, 2021, the subsidiary Fangda Jianke obtained the certificate of high-tech enterprise jointly issued by
Shenzhen Science and Technology Innovation Commission, Shenzhen Finance Bureau, State Administration of Taxation and
Shenzhen Taxation Bureau. The certificate number is GR202144200527. Within three years after obtaining the qualification of
high-tech enterprise (from 2021 to 2023), the income tax will be levied at 15%.
(2) On December 23, 2021, the subsidiary Fangda Zhichuang Technology Co., Ltd. obtained the certificate of high tech
enterprise jointly issued by Shenzhen Science and Technology Innovation Commission, Shenzhen Finance Bureau, State
Administration of Taxation and Shenzhen Taxation Bureau. The certificate number is GR202144205924. Within three years after
obtaining the qualification of high tech enterprise (from 2021 to 2023), the income tax will be levied at 15%.
(3) On November 3, 2021, the subsidiary Fangda Jiangxi new material Co., Ltd. obtained the certificate of high tech enterprise
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jointly issued by Jiangxi Provincial Department of Science and Technology, Jiangxi Provincial Department of Finance, State
Administration of Taxation and Jiangxi Provincial Bureau of Taxation. The certificate number is GR202136000174. Within three
years after obtaining the qualification of high tech enterprise (2021-2023), the income tax will continue to be levied at 15%.
(4) On December 3, 2020, the subsidiary Fangda Chengdu Technology obtained the certificate of high tech enterprise jointly
issued by the Department of Science and Technology of Sichuan Province, the Department of Finance of Sichuan Province, the State
Administration of Taxation and the Sichuan Provincial Taxation Bureau. Within three years after obtaining the qualification of high
tech enterprise (2020-2022), the income tax will continue to be levied at 15%.
(5) On March 2, 2016, according to the document issued by Luxi National Tax Bureau, the PV power generation project
undertaken by Subsidiary Pingxiang Fangda Luxin New Energy Co., Ltd, became the infrastructure project supported by the central
government. the Company enjoys a three-year enterprise income tax relief and 50% reduction for another three years. In 2016, the
Company entered the exemption period.
(6) On June 2, 2016, according to the document issued by Nanchang Xinjian District National Tax Bureau, the PV power
generation project undertaken by Subsidiary Nanchang Xinjian Fangda New Energy Co., Ltd, became the infrastructure project
supported by the central government. the Company enjoys a three-year enterprise income tax relief and 50% reduction for another
three years. In 2016, the Company entered the exemption period.
(7) The subsidiary KechuangyuanSoftware is an enterprise located in Qianhai Shenzhen Hong Kong Modern Service Industry
Cooperation Zone. Its main business meets the conditions of Preferential Catalogue of Enterprise Income Tax in Qianhai Shenzhen
Hong Kong Modern Service Industry Cooperation Zone (2021), and the income tax is levied at 15%.
(8) On December 2, 2019, the subsidiary Dongguan Fangda New Materials Co., Ltd. obtained the ―High-tech Enterprise
Certificate‖ jointly issued by Guangdong Science and Technology Department, Guangdong Provincial Department of Finance, and
Guangdong Provincial Taxation Bureau. The income tax shall be levied at 15% within three years after the qualification of the
high-tech enterprise is recognized (2019 to 2021).
(9) On November 12, 2020, the subsidiary Fangda Shanghai Zhijian obtained the certificate of high tech enterprise jointly
issued by Shanghai Science and Technology Commission, Shanghai Finance Bureau and Shanghai Taxation Bureau. Within three
years (from 2020 to 2022) after obtaining the qualification of high tech enterprise, the income tax will continue to be charged at 15%.
(10) On December 11, 2020, the subsidiary Yunzhu Industrial obtained the certificate of high tech enterprise jointly issued by
Shenzhen Science and Technology Innovation Commission, Shenzhen Finance Commission and Shenzhen State Administration of
taxation. The certificate number is GR202044202438. Within three years after obtaining the qualification of high tech enterprise
(2020-2022), the income tax will be levied at 15%.
(11) According to the Notice on the Implementation of Preferential Tax Reduction and Exemption Policies for Small and
Micro Enterprises (CS [2019] No. 13) and the Announcement on the Implementation of Preferential Income Tax Policies for Small
and Micro Enterprises and Individual Industrial and Commercial Households (Announcement No. 12 of the State Administration of
Taxation of the Ministry of Finance in 2021) issued by the Ministry of Finance and the State Administration of Taxation, some
companies belong to small and low profit enterprises in 2021, and their income is subject to enterprise income tax in accordance with
the provisions of the above documents.
VII. Notes to the consolidated financial statements
1. Monetary capital
In RMB
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Annual Report 2021 of China Fangda Group Co., Ltd.
Item Closing balance Opening balance
Inventory cash: 3,192.76 482.09
Bank deposits 910,763,535.83 1,124,691,012.59
Other monetary capital 376,797,030.73 339,282,667.77
Total 1,287,563,759.32 1,463,974,162.45
Including: total amount deposited in
43,244,091.68 45,275,606.68
overseas
The total amount of money that
has restrictions on use due to mortgage, 395,312,687.73 435,587,632.71
pledge or freezing
Others:
(1) The use of restricted funds in bank deposits is RMB34,878,861.73, of which RMB7,154,713.67 is restricted due to lawsuits,
RMB24,518,660.11 is deposited in real estate development supervision accounts, RMB3,138,069.65 is deposited in special labor
insurance accounts and migrant workers’ wage accounts, and other security deposit accounts. The deposit is RMB67,418.30; the
restricted funds used in other currency funds are RMB360,433,826.00, mainly for draft deposits, periodic guarantee deposits,
guarantee deposits for issuance of guarantees, etc. In addition, there are no other funds in the monetary funds at the end of the period
that have restrictions on use and potential recovery risks due to mortgages, pledges or freezing.
(2) In the preparation of the cash flow statement, the above-mentioned deposits and other restricted deposits are not used as cash and
cash equivalents.
(3) At the end of the period, the Company's total amount deposited abroad was RMB43,244,091.68.
2. Transactional financial assets
In RMB
Item Closing balance Opening balance
Financial assets measured at fair value with variations 25,135,241.89 14,382,896.04
accounted into current income account
Including: Investment of financial products 25,135,241.89 14,382,896.04
Total 25,135,241.89 14,382,896.04
3. Derivative financial assets
In RMB
Item Closing balance Opening balance
Futures contracts 310,325.00 6,330,475.00
Forward foreign exchange contract 759,262.62 643,973.22
Total 1,069,587.62 6,974,448.22
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4. Notes receivable
(1) Classification of notes receivable
In RMB
Item Closing balance Opening balance
Bank acceptance 32,759,446.43 21,081,547.58
Commercial acceptance 133,618,433.58 186,083,516.39
Total 166,377,880.01 207,165,063.97
In RMB
Type Closing balance Opening balance
Remaining book Bad debt Book Remaining book Bad debt Book
value provision value value provision value
Amount Propor Amount Provis Amount Propor Am Provisi
tion ion tion oun on rate
rate t
Including: Notes 168,962,58 100.0 2,584,70 1.53% 166,377,8 207,165,0 100.0 207,16
receivable with 9.90 0% 9.89 80.01 63.97 0% 5,063.9
provision for bad 7
debts by portfolio
Including: 136,203,14 80.61 2,584,70 1.90% 133,618,4 186,083,5 89.82 186,08
Commercial 3.47 % 9.89 33.58 16.39 % 3,516.3
acceptance 9
Bank acceptance 32,759,446 19.39 32,759,44 21,081,54 10.18 21,081,
.43 % 6.43 7.58 % 547.58
Total 168,962,58 100.0 2,584,70 1.53% 166,377,8 207,165,0 100.0 207,16
9.90 0% 9.89 80.01 63.97 0% 5,063.9
7
Provision for bad debts by combination: trade acceptance
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Commercial acceptance 136,203,143.47 2,584,709.89 1.90%
Total 136,203,143.47 2,584,709.89 --
Provision for bad debts by combination: bank acceptance
In RMB
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Closing balance
Name
Remaining book value Bad debt provision Provision rate
Bank acceptance 32,759,446.43 0.00 0.00%
Total 32,759,446.43 0.00 --
If the provision for bad debts of bills receivable is made in accordance with the general model of expected credit losses, please refer
to the disclosure of other receivables to disclose information about bad debts:
□ Applicable √ Inapplicable
(2) Bad debt provision made, returned or recovered in the period
Bad debt provision made in the period:
In RMB
Change in the period
Type Opening balance Written-back or Closing balance
Provision Canceled Others
recovered
Commercial
0.00 2,584,709.89 2,584,709.89
acceptance
Total 0.00 2,584,709.89 2,584,709.89
Including significant recovery or reversal:
□ Applicable √ Inapplicable
(3) The Group has no endorsed or discounted immature receivable notes at the end of the period.
In RMB
Item De-recognized amount Not de-recognized amount
Bank acceptance 20,277,605.65
Commercial acceptance 5,686,819.52
Total 25,964,425.17
(4) Notes transferred to accounts receivable due to default of the issue at the end of period
In RMB
Amount transferred to accounts receivable at the end of the
Item
period
Commercial acceptance 42,492,227.62
Total 42,492,227.62
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5. Account receivable
(1) Account receivable disclosed by categories
In RMB
Closing balance Opening balance
Remaining book Remaining book
Bad debt provision Bad debt provision
Type value Book value
Book value
Proportio Provision value Proportio Provision
Amount Amount Amount Amount
n rate n rate
Account receivable
for which bad debt 83,718,6 78,221,0 5,497,621 99,969,06 99,969,06
11.18% 93.43% 12.42% 100.00%
provision is made by 40.09 18.60 .49 9.48 9.48
group
Including:
54,873,2 54,873,2 54,873,22 54,873,22
1. Customer 1 7.32% 100.00% 6.82% 100.00%
23.21 23.21 3.21 3.21
4,388,33 4,388,33 21,739,38 21,739,38
2. Customer 2 0.59% 100.00% 2.70% 100.00%
8.91 8.91 1.96 1.96
13,461,8 13,461,8 13,461,83 13,461,83
3. Customer 3 1.80% 100.00% 1.67% 100.00%
34.96 34.96 4.96 4.96
5,996,38 2,998,19 2,998,191
4. Customer 4 0.80% 50.00%
2.91 1.46 .45
4,998,86 2,499,43 2,499,430
5. Customer 5 0.67% 50.00%
0.10 0.06 .04
7,270,000 7,270,000
6. Customer 6 0.90% 100.00%
.00 .00
2,624,629 2,624,629
7. Customer 7 0.33% 100.00%
.35 .35
Account receivable
for which bad debt 664,994, 114,038, 550,956,2 705,506,6 88,546,42 616,960,25
88.82% 17.15% 87.58% 12.55%
provision is made by 519.44 316.73 02.71 80.47 7.93 2.54
group
Including:
1. Portfolio 1:
414,989, 101,816, 313,172,9 514,227,5 78,035,74 436,191,77
Engineering 55.43% 24.53% 63.84% 15.18%
471.61 476.32 95.29 13.84 0.63 3.21
operations section
2. Portfolio 2: Real
153,920, 7,774,66 146,146,0 110,059,7 7,310,980 102,748,80
estate business 20.56% 5.05% 13.66% 6.64%
735.18 0.29 74.89 82.48 .25 2.23
payments
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3. Portfolio 3: Other 96,084,3 4,447,18 91,637,13 81,219,38 3,199,707 78,019,677.
12.83% 4.63% 10.08% 3.94%
business models 12.65 0.12 2.53 4.15 .05 10
748,713, 192,259, 556,453,8 805,475,7 188,515,4 616,960,25
Total 100.00% 25.68% 100.00% 23.40%
159.53 335.33 24.20 49.95 97.41 2.54
Separate bad debt provision:
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate Reason
Customer credit status
1. Customer 1 54,873,223.21 54,873,223.21 100.00% deteriorates and is hard
to recover
Customer credit status
2. Customer 2 4,388,338.91 4,388,338.91 100.00% deteriorates and is hard
to recover
Customer credit status
3. Customer 3 13,461,834.96 13,461,834.96 100.00% deteriorates and is hard
to recover
Customer credit status
4. Customer 4 5,996,382.91 2,998,191.46 50.00%
deteriorates
Customer credit status
5. Customer 5 4,998,860.10 2,499,430.06 50.00%
deteriorates
Total 83,718,640.09 78,221,018.60 -- --
Provision for bad debts by combination: Portfolio 1: Engineering business
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Less than 1 year 187,157,282.84 3,668,200.50 1.96%
1-2 years 66,463,262.26 3,761,820.65 5.66%
2-3 years 42,849,368.69 5,467,579.44 12.76%
3-4 years 23,310,625.66 4,606,179.61 19.76%
4-5 years 19,170,014.14 8,273,778.10 43.16%
Over 5 years 76,038,918.02 76,038,918.02 100.00%
Total 414,989,471.61 101,816,476.32 --
Group recognition basis:
See 9. Financial Tools in Chapter X, V, Important Accounting Policies and Accounting Estimates for the recognition criteria and
instructions for withdrawing bad debt reserves by portfolio
Bad debt provision by portfolio: portfolio 2: real estate business funds
In RMB
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Annual Report 2021 of China Fangda Group Co., Ltd.
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Less than 1 year 108,962,815.87 1,089,670.11 1.00%
1-2 years 523,295.66 26,164.78 5.00%
2-3 years 63,681.46 3,184.07 5.00%
3-4 years 22,273,070.00 3,340,960.50 15.00%
4-5 years
Over 5 years 22,097,872.19 3,314,680.83 15.00%
Total 153,920,735.18 7,774,660.29 --
Provision for bad debts by combination: portfolio 3: Others business
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Less than 1 year 59,223,651.59 432,332.65 0.73%
1-2 years 13,391,961.60 281,231.19 2.10%
2-3 years 14,678,253.25 1,235,909.34 8.42%
3-4 years 8,272,851.42 2,050,012.57 24.78%
4-5 years 516,632.82 446,732.40 86.47%
Over 5 years 961.97 961.97 100.00%
Total 96,084,312.65 4,447,180.12 --
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses, please
refer to the disclosure of other receivables to disclose information about bad debts:
□ Applicable √ Inapplicable
Account age
In RMB
Age Remaining book value
Within 1 year (inclusive) 428,499,793.69
1-2 years 80,378,519.52
2-3 years 59,663,001.60
Over 3 years 180,171,844.72
3-4 years 60,998,124.22
4-5 years 20,532,393.07
Over 5 years 98,641,327.43
Total 748,713,159.53
The Company needs to comply with the disclosure requirements of the decoration and decoration industry in the Guidelines for the
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Self-discipline and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.
Customer Balance of accounts Balance of provision for Reason of the age Whether
receivable of over 3 bad debts there is a
years risk of
recovery
Customer 1 54,873,223.21 54,873,223.21 Customer credit status Yes
deteriorates
Customer 2 25,889,547.93 22,645,148.93 Customer credit status Yes
deteriorates
Customer 3 17,374,148.42 17,295,727.82 Customer credit status Yes
deteriorates
Customer 4 13,461,834.96 13,461,834.96 Customer credit status Yes
deteriorates
(2) Bad debt provision made, returned or recovered in the period
Bad debt provision made in the period:
In RMB
Change in the period
Type Opening balance Written-back or Closing balance
Provision Canceled Others
recovered
Separate bad debt
99,969,069.48 5,497,621.52 24,621,043.05 2,624,629.35 78,221,018.60
provision
Provision for bad
debts by 88,546,427.93 25,868,992.41 377,103.61 114,038,316.73
combination
Total 188,515,497.41 31,366,613.93 24,621,043.05 3,001,732.96 192,259,335.33
Including significant recovery or reversal:
In RMB
Entity Written-back or recovered Method
amount
Customer 1 17,351,043.05 After applying for bankruptcy liquidation, the customer shall have
priority to receive compensation and be recovered by bank transfer
Customer 2 7,270,000.00 After the prosecution, a settlement was finally reached through
negotiation and mediation, and the bank transfer was recovered
Total 24,621,043.05 --
Reason for recovery and basis for the original bad debt provision ratio
After the Company verified that 100% of the bad debt reserves were withdrawn in the early stage, it was difficult for the management
to recover the original accounts receivable in full. In the follow-up, the Company made unremitting efforts to obtain the priority of
project payment through litigation and applying for bankruptcy liquidation of the customer, and finally recovered the above amount
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through priority compensation after the bankruptcy liquidation of customer 1, and finally recovered the above amount through
litigation, negotiation and mediation with customer 2.
(3) Written-off account receivable during the period
In RMB
Item Amount
Account receivable written off 3,001,732.96
(4) Balance of top 5 accounts receivable at the end of the period
In RMB
Closing balance of accounts Balance of bad debt provision at
Entity Percentage (%)
receivable the end of the period
No.1 54,873,223.21 7.33% 54,873,223.21
No.2 46,066,573.06 6.15% 6,672,597.64
No.3 32,238,838.02 4.31% 631,881.23
No.4 31,500,000.00 4.21% 2,912,732.66
No.5 26,002,530.93 3.47% 22,647,363.40
Total 190,681,165.22 25.47%
(5) Amount of assets and liabilities formed by transferring accounts receivable and continuing involvement
Item Transfer method of Amount of assets formed by Amount of liabilities formed by
assets continued involvement continued involvement
Customer 1 Recourse factoring 600,000.00 600,000.00
Customer 2 Credit discount 5,000,000.00 5,000,000.00
Customer 3 Credit discount 2,781,343.60 2,781,343.60
Total 8,381,343.60 8,381,343.60
(6) Receivables derecognized due to transfer of financial assets
Item Transfer method of De-recognized Gain or loss related to the
financial assets amount de-recognition
Customer 1 Factoring 3,242,714.47 -126,141.59
Customer 2 Factoring 12,080,425.76 -480,319.06
Customer 3 Factoring 5,997,891.92 -284,496.62
Customer 4 Factoring 16,897,439.00 -1,351,795.12
Customer 5 Factoring 9,652,568.98 -370,002.07
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Annual Report 2021 of China Fangda Group Co., Ltd.
Customer 6 Factoring 21,246,635.90 -1,248,279.11
Customer 7 Factoring 736,895.96 -28,783.97
Customer 8 Factoring 14,522,294.67 -557,208.89
Customer 9 Factoring 11,897,246.28 -496,531.57
Customer 10 Factoring 5,666,673.70 -216,061.79
Customer 11 Factoring 10,803,986.61 -405,489.87
Customer 12 Factoring 1,608,410.51 -66,671.30
Total 114,353,183.76 -5,631,780.96
6. Receivable financing
In RMB
Item Closing balance Opening balance
Notes receivable 4,263,500.00 10,727,129.28
Total 4,263,500.00 10,727,129.28
Increase or decrease in the current period of receivables financing and changes in fair value
□ Applicable √ Inapplicable
If the provision for financing impairment of receivables is accrued in accordance with the general expected credit loss model, please
refer to the disclosure of other receivables to disclose the relevant information of the impairment provision:
□ Applicable √ Inapplicable
7. Prepayment
(1) Account age of prepayments
In RMB
Closing balance Opening balance
Age
Amount Proportion Amount Proportion
Less than 1 year 18,013,831.62 78.24% 18,708,517.50 78.15%
1-2 years 805,756.05 3.50% 3,086,312.85 12.89%
2-3 years 2,467,980.33 10.72% 1,156,139.70 4.83%
Over 3 years 1,734,917.03 7.54% 989,094.83 4.13%
Total 23,022,485.03 -- 23,940,064.88 --
Explanation of non-settlement of significant prepayments with an accounting age of more than 1 year:
At the end of the period, there is no significant prepayment with an aging of more than one year.
(2) Balance of top 5 prepayments at the end of the period
The total of top5 prepayments in terms of the prepaid entities in the period is RMB9,744,576.22, accounting for 42.33% of the total
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Annual Report 2021 of China Fangda Group Co., Ltd.
prepayments at the end of the period.
8. Other receivables
In RMB
Item Closing balance Opening balance
Other receivables 165,093,406.23 162,284,588.59
Total 165,093,406.23 162,284,588.59
(1) Other receivables
1) Other receivables are disclosed by nature
In RMB
By nature Closing balance of book value Opening balance of book value
Deposit 106,427,141.89 101,542,363.12
Construction borrowing and advanced
31,857,018.14 35,803,075.11
payment
Staff borrowing and petty cash 1,828,554.92 1,586,850.35
VAT refund receivable 4,903,075.25 3,265,790.25
Debt by Luo Huichi 12,992,291.48 12,992,291.48
Others 29,074,979.66 31,373,713.44
Total 187,083,061.34 186,564,083.75
2) Method of bad debt provision
In RMB
First stage Second stage Third stage
Expected credit Expected credit loss for the Expected credit loss for the
Bad debt provision Total
losses in the next 12 entire duration (no credit entire duration (credit
months impairment) impairment has occurred)
Balance on Friday,
2,250,959.70 572,176.59 21,456,358.87 24,279,495.16
January 1, 2021
Balance on Friday,
January 1, 2021 in the —— —— —— ——
current period
Provision -34,045.62 1,691.78 -1,389,580.37 -1,421,934.21
Canceled in the current
462.90 867,442.94 867,905.84
period
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Balance on Friday,
2,216,451.18 573,868.37 19,199,335.56 21,989,655.11
December 31, 2021
Changes in book balances with significant changes in the current period
□ Applicable √ Inapplicable
Account age
In RMB
Age Remaining book value
Within 1 year (inclusive) 29,909,781.48
1-2 years 25,899,832.55
2-3 years 18,676,618.97
Over 3 years 112,596,828.34
3-4 years 73,350,354.72
4-5 years 20,644,766.51
Over 5 years 18,601,707.11
Total 187,083,061.34
3) Bad debt provision made, returned or recovered in the period
Bad debt provision made in the period:
In RMB
Change in the period
Opening
Type Written-back or Closing balance
balance Provision Canceled Others
recovered
Other receivables
and bad debt 24,279,495.16 -1,421,934.21 867,905.84 21,989,655.11
provision
Total 24,279,495.16 -1,421,934.21 867,905.84 21,989,655.11
4) Other receivable written off in the current period
In RMB
Item Amount
Other receivable written off 867,905.84
5) Balance of top 5 other receivables at the end of the period
In RMB
Entity By nature Closing balance Age Percentage (%) Balance of bad debt
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Annual Report 2021 of China Fangda Group Co., Ltd.
provision at the end
of the period
Shenzhen Yikang Margin and current
70,062,675.83 3-4 years 37.45% 1,043,933.87
Real Estate Co. Ltd. account
Bangshen
Electronics Deposit 20,000,000.00 4-5 years 10.69% 298,000.00
(Shenzhen) Co., Ltd.
Shenzhen Rijiasheng
Arrears 18,808,945.57 1-2 years 10.05% 564,268.37
Trading Co., Ltd
Luo Huichi Arrears 12,992,291.48 Over 5 years 6.94% 12,992,291.48
Shenzhen Henggang
Deposit 8,000,000.00 3-4 years 4.28% 119,200.00
Dakang Co., Ltd.
Total -- 129,863,912.88 -- 69.41% 15,017,693.72
6) Items involving government subsidies:
In RMB
Estimated time, amount
Entity Governmental subsidy Closing balance Closing age
and basis of receipt
Shenzhen Tax Bureau of
Receivable refund of Full recovered in less
State Administration of 617,821.41 Less than 1 year
VAT than 1 year
Taxation
9. Inventories
Whether the Company needs to comply with disclosure requirements of the real estate industry.
Yes
(1) Classification of inventories
The Company needs to comply with the disclosure requirements of the real estate industry in the Guidelines for the Self-discipline
and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.
Classified by nature:
In RMB
Closing balance Opening balance
Provision for Provision for
inventory inventory
Item Remaining book depreciation or Remaining book depreciation or
Book value Book value
value contract value contract
performance cost performance cost
impairment impairment
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Annual Report 2021 of China Fangda Group Co., Ltd.
provision provision
Development cost 214,159,331.62 214,159,331.62 458,032,158.63 458,032,158.63
Development
215,045,857.53 215,045,857.53 99,012,986.31 99,012,986.31
products
Contract
performance 120,770,607.88 120,770,607.88 140,403,466.43 464,651.43 139,938,815.00
costs
Raw materials 87,964,749.50 87,964,749.50 61,682,744.96 55,182.86 61,627,562.10
Product in
71,066,791.34 71,066,791.34 66,570,800.79 66,570,800.79
process
Finished goods in
7,514,662.13 7,514,662.13 7,784,598.06 7,784,598.06
stock
Low price
190,365.86 190,365.86 123,705.51 123,705.51
consumable
OEM materials 16,568,559.12 16,568,559.12 3,562,856.58 3,562,856.58
Materials in
1,178,307.90 1,178,307.90
transit
Total 733,280,924.98 733,280,924.98 838,351,625.17 519,834.29 837,831,790.88
Development cost and capitalization rate of its interest are disclosed as follows:
In RMB
Transferr
Increase Including:
Completi ed to
Estimated Other (develop Accumula capitalize
on filing / developm
Starting total Opening decrease ment Closing tive d interest Capital
Item estimated ent
time investmen balance in this cost) in balance capitalize for the source
completio product in
t period this d interest current
n time this
period period
period
Nanchang Tuesday, Tuesday,
670,000,0 250,191,6 266,413,1 10,926,70 27,148,25
Fangda May 1, April 27,
00.00 19.08 69.86 6.01 6.79
Center 2018 2021
Dakang
1 31 Bank
Village 3,600,000 197,352,0 1,671,440 199,023,4
December December loan+
Project in ,000.00 43.69 .59 84.28
2023 2029 self-owne
Shenzhen
d fund
Fangda
Thursday, Tuesday,
Bangshen 870,000,0 10,488,49 4,647,351 15,135,84
December December
Industry 00.00 5.86 .48 7.34
1, 2022 31, 2024
Park
Total -- -- 5,140,000 458,032,1 266,413,1 10,926,70 33,467,04 214,159,3 --
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Annual Report 2021 of China Fangda Group Co., Ltd.
,000.00 58.63 69.86 6.01 8.86 31.62
Disclose the main project information of "Development Products" according to the following format:
In RMB
Including:
Accumulative
Completion Opening capitalized
Item Increase Decrease Closing balance capitalized
time balance interest for the
interest
current period
Phase I of Thursday,
Fangda December 99,012,986.31 36,082,808.94 62,930,177.37 2,417,765.48
Town 29, 2016
Nanchang Tuesday,
266,413,169.8 114,297,489.7
Fangda April 27, 152,115,680.16 5,594,318.36 877,836.18
6 0
Center 2021
266,413,169.8 150,380,298.6
Total -- 99,012,986.31 215,045,857.53 8,012,083.84 877,836.18
6 4
(2) Provision for inventory depreciation and contract performance cost impairment provision
The inventory depreciation provision is disclosed as follows:
Classified by nature:
In RMB
Increase in this period Decrease in this period
Opening Closing
Item Recover or Remarks
balance Provision Others Others balance
write-off
Contract
performance 464,651.43 464,651.43
costs
Raw materials 55,182.86 55,182.86
Total 519,834.29 519,834.29 --
(3) Capitalization rate of interest in the closing inventory balance
As at 31 December 2021, the amount of the capitalization of borrowing costs in the balance of the end-of-period inventory was
RMB8,012,083.84.
10. Contract assets
In RMB
Item Closing balance Opening balance
Remaining book Impairment Book value Remaining Impairment Book value
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Annual Report 2021 of China Fangda Group Co., Ltd.
value provision book value provision
Completed and 1,840,664,586.0 144,079,042.3 1,696,585,543.7 1,540,868,199. 145,971,938. 1,394,896,261.
unsettled project 3 1 2 19 14 05
funds
Warranty 63,551,208.32 10,907,883.76 52,643,324.56 12,105,019.23 325,779.33 11,779,239.90
Sales funds with 34,103,742.16 384,937.31 33,718,804.85 27,639,344.20 351,544.65 27,287,799.55
conditional
collection right
Total 1,938,319,536.5 155,371,863.3 1,782,947,673.1 1,580,612,562. 146,649,262. 1,433,963,300.
1 8 3 62 12 50
The amount and reasons for major changes in the book value of contract assets during the current period:
In RMB
Item Change Reason
This is mainly due to the unsettled project funds with conditional
Completed and unsettled
301,689,282.67 collection rights arising from the revenue recognized in the project
project funds
contract this year
This is mainly due to the unified classification of the warranty
Warranty 40,864,084.66
deposit due within one year into the contract asset items
Total 342,553,367.33 ——
If the provision for bad debts of contract assets is made in accordance with the general model of expected credit losses, please refer to
the disclosure of other receivables to disclose information about bad debts:
□ Applicable √ Inapplicable
Provision made for bad debts of contract assets in this period
In RMB
Item Provision Transferred back in Written off in the Reason
the current period current period
Completed but 5,437,104.17 7,330,000.00 After the prosecution, a settlement
unsettled assets was finally reached through
negotiation and mediation, and the
bank transfer was recovered
Unexpired warranty 10,582,104.43
deposit
Sales funds with 33,392.66
conditional collection
right
Total 16,052,601.26 7,330,000.00 --
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Annual Report 2021 of China Fangda Group Co., Ltd.
11. Non-current assets due in 1 year
In RMB
Item Closing balance Opening balance
Contract assets due within one year 141,681,778.35
Total 141,681,778.35
说明：根据《关于严格执行企业会计准则切实做好企业 2021 年年报工作的通知》财会〔2021〕32 号，本公司将一年内到期
的合同资产统一分类至合同资产项目列报。
12. Other current assets
In RMB
Item Closing balance Opening balance
Contract acquisition cost 2,156,027.17
Tax to be input 145,743,267.08 136,984,389.66
Overpayment and prepayment of income
98,092,258.00 88,741,787.42
tax
Other prepaid taxes 8,520,856.65 2,373,031.15
Deferred discount expense 12,428,625.55 2,644,267.12
Others 1,499.01 495,614.58
Total 264,786,506.29 233,395,117.10
13. Long-term share equity investment
In RMB
Change (+,-) Balance
Investme of
Other
nt gain Cash impairme
Opening Decrease miscellan Closing
Invested Increased and loss Other dividend Impairme nt
book d eous book
entity investmen recognize equity or profit nt Others provision
value investmen income value
t d using change announce provision at the end
t adjustmen
the equity d of the
t
method period
1. Joint venture
2. Associate
Ganshang
Joint 2,364,798 2,365,399
600.66
Investme .65 .31
nt
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Annual Report 2021 of China Fangda Group Co., Ltd.
Jiangxi
Business
Innovativ
e
Property
53,537,57 -684,032. 52,853,54
Joint
9.30 47 6.83
Stock
(Jiangxi
Business
Innovatio
n)
55,902,37 -683,431. 55,218,94
Subtotal
7.95 81 6.14
55,902,37 -683,431. 55,218,94
Total
7.95 81 6.14
14. Investment in other equity tools
In RMB
Item Closing balance Opening balance
Unlisted equity instrument investment 14,180,652.65 17,628,307.59
Total 14,180,652.65 17,628,307.59
Sub-disclosure of non-tradable equity instrument investment in the current period
In RMB
Reason for
Amount of other measurement at
Reason for
Dividend comprehensive fair value with
transfer of other
Item recognized in the Total gain Total loss income variations
miscellaneous
period transferred to accounted into
into income
retained earnings current income
account
Shenyang Fangda
Semi-conductor
Lighting Co., Ltd.
14,381,923.02
(hereinafter
Shenyang
Fangda)
Shenzhen Huihai
Yirong Internet 3,779,277.52
Service Co., Ltd.
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Annual Report 2021 of China Fangda Group Co., Ltd.
15. Other non-current financial assets
In RMB
Item Closing balance Opening balance
Financial assets measured at fair value
with variations accounted into current 7,525,408.24 5,025,186.16
income account
Total 7,525,408.24 5,025,186.16
16. Investment real estates
(1) Investment real estate measured at costs
√ Applicable □ Inapplicable
In RMB
Item Houses & buildings Total
I. Book value
1. Opening balance 10,410,691.87 10,410,691.87
2. Increase in this period 6,978,132.52 6,978,132.52
(1) Transfer-in from inventory\fixed 6,978,132.52 6,978,132.52
assets\construction in progress
3. Decrease in this period 0.00 0.00
4. Closing balance 17,388,824.39 17,388,824.39
II. Accumulative depreciation and
amortization
1. Opening balance 4,053,723.75 4,053,723.75
2. Increase in this period 3,199,287.61
(1) Provision or amortization 434,384.89 434,384.89
(2) Fixed assets 2,764,902.72 2,764,902.72
3. Decrease in this period 0.00 0.00
4. Closing balance 7,253,011.36 7,253,011.36
III. Impairment provision
1. Opening balance
2. Increase in this period
3. Decrease in this period
4. Closing balance
IV. Book value
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Annual Report 2021 of China Fangda Group Co., Ltd.
1. Closing book value 10,135,813.03 10,135,813.03
2. Opening book value 6,356,968.12 6,356,968.12
(2) Investment real estate measured at fair value
√ Applicable □ Inapplicable
In RMB
Item Houses & buildings Total
I. Opening balance 5,628,291,448.40 5,628,291,448.40
II. Change in this period 126,925,131.70 126,925,131.70
Add: external purchase 2,805,641.38 2,805,641.38
Transfer-in from inventory\fixed 63,880,340.74 63,880,340.74
assets\construction in progress
Less: other transfer-out 16,149,386.67 16,149,386.67
Change in fair value 76,388,536.25 76,388,536.25
III. Closing balance 5,755,216,580.10 5,755,216,580.10
The Company needs to comply with the disclosure requirements of the real estate industry in the Guidelines for the Self-discipline
and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.
Disclosure of investment real estate measured at fair value by projects
In RMB
Item Locati Completion Building Rental Opening Closing fair Change Reason for the
on time area income in fair value in fair change and report
the report value value
period
Commercial Shenz 11 October 22,565.42 33,262,694 1,340,3 1,344,899,0 0.34% The main recognition
podium of hen 2017 .93 85,948. 32.00 basis of the fair value
Fangda 00 is the real estate
Town appraisal report
"SWJPZ [2022] SZ
Building 1# Shenz 29 72,517.71 67,113,139 3,646,9 3,640,588,8 -0.18%
No. 009" issued by
of Fangda hen December .02 71,680. 48.63
Shenzhen Wenji
Town 2018 07
Land Real Estate
Fangda Shenz 28 17432.38 15,177,308 334,498 329,471,98 -1.50%
Appraisal
Building hen December .23 ,436.00 2.00
Engineering
2002
Consulting Co., Ltd
Nanchang Nanch Thursday, 37,876.98 262,081.92 302,854 436,493,83 44.13% The main recognition
Fangda ang December ,554.33 8.47 basis of fair value is:
Center 10, 2020 the real estate
appraisal report
(SWJPZ [2022] SZ
196
Annual Report 2021 of China Fangda Group Co., Ltd.
No. 005) issued by
Shenzhen Wenji
Land Real Estate
Appraisal
Engineering
Consulting Co., Ltd;
The change of
44.13% in fair value
in the current period
is mainly due to the
change of some
inventories for sale
into investment real
estate for external
lease. For details, see
"New Investment
Real Estate
Measured by Fair
Value in the Current
Period".
Total —— —— 150,392.4 115,815,22 5,624,7 5,751,453,7 2.25% ——
9 4.10 10,618. 01.10
40
Whether the Company has investment real estate in the current construction period
□ Yes √ No
Whether there is new investment real estate measured at fair value in the report period
√ Yes □ No
Newly-added investment real estate measured by fair value in the current period:
In RMB
Item Original Original Recorded Closing fair Change time Different handling
accounting book value fair value value method and basis
method
Commercial Inventory, 44,670,673. 98,125,259. 100,963,907. Wednesday, According to the relevant
building 1# and measured at 42 10 00 September 29, provisions of the
commercial cost 2021 standards for investment
building 2# of real estate, when the
Nanchang Fangda inventory is converted
Center Project into investment real
estate measured at fair
value, the difference of
RMB534585.68 between
197
Annual Report 2021 of China Fangda Group Co., Ltd.
the fair value on the date
of conversion and the
original book value is
included in other
comprehensive income
Total —— 44,670,673. 98,125,259. 100,963,907. —— ——
42 10 00
(3) Investment real estate without ownership certificate
In RMB
Item Book value Reason
Nanchang Fangda Center project 4#
17,371,062.04 The acceptance record is being handled
building commercial
Others:
① On December 31, 2021, the fair value of Fangda Science and Technology Building in the Company's investment real estate was
RMB329,471,982.00, which was mortgaged to the loan of China Construction Bank Shenzhen OCT sub branch. The loan has been
repaid and released on January 21, 2022; The fair value of some real estate in Fangda Town is RMB19,588,944.13, which has been
mortgaged to the loan of China Construction Bank Shenzhen OCT sub branch. The loan has not expired and has not been released;
The fair value of some real estate in Fangda Town is RMB1,344,899,032.00, which has been mortgaged to the loan of Shenzhen
Dongbin branch of Huaxia Bank. The loan has not expired and has not been released.
② Other transfers out in the current period are due to the needs of business development. The Company has transferred some houses
of Fangda Science and Technology Building from external rental to self use.
17. Fixed assets
In RMB
Item Closing balance Opening balance
Fixed assets 663,414,297.61 481,326,212.63
Disposal of fixed assets 1,891,111.12
Total 663,414,297.61 483,217,323.75
(1) Fixed assets
In RMB
Houses & Mechanical Transportation Electronics and
Item PV power plants Total
buildings equipment facilities other devices
I. Original book
value:
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Annual Report 2021 of China Fangda Group Co., Ltd.
1. Opening
415,725,429.92 121,496,328.96 21,516,442.64 46,349,557.98 129,596,434.84 734,684,194.34
balance
2. Increase in
210,692,277.09 4,542,539.93 441,482.29 6,187,268.00 221,863,567.31
this period
(1) Purchase 4,146,026.89 441,482.29 5,691,896.11 10,279,405.29
(2) Transfer-in of
construction in 182,117,539.73 495,371.89 182,612,911.62
progress
(3) Other
28,574,737.36 396,513.04 28,971,250.40
increases
3. Decrease in
15,853,235.89 5,399,995.61 566,996.24 1,666,720.21 23,486,947.95
this period
(1) Disposal or
8,013,215.89 5,399,995.61 543,548.97 1,298,348.77 15,255,109.24
retirement
(2) Other
7,840,020.00 23,447.27 368,371.44 8,231,838.71
decrease
4. Closing
610,564,471.12 120,638,873.28 21,390,928.69 50,870,105.77 129,596,434.84 933,060,813.70
balance
II. Accumulative
depreciation
1. Opening
89,797,346.50 89,670,126.47 16,097,483.98 29,337,279.16 28,357,356.10 253,259,592.21
balance
2. Increase in
11,438,347.53 6,109,360.61 871,783.29 2,718,833.70 6,148,440.12 27,286,765.25
this period
(1) Provision 11,438,347.53 5,912,674.41 871,783.29 2,013,898.65 6,148,440.12 26,385,144.00
(2) Other
196,686.20 704,935.05 901,621.25
increases
3. Decrease in
4,682,165.10 4,692,811.64 496,471.24 1,124,862.89 10,996,310.87
this period
(1) Disposal or
2,915,726.93 4,692,811.64 494,524.56 1,120,083.99 9,223,147.12
retirement
(2) Other
1,766,438.17 1,946.68 4,778.90 1,773,163.75
decrease
4. Closing
96,553,528.93 91,086,675.44 16,472,796.03 30,931,249.97 34,505,796.22 269,550,046.59
balance
III. Impairment
provision
1. Opening 41,621.81 56,767.69 98,389.50
199
Annual Report 2021 of China Fangda Group Co., Ltd.
balance
2. Increase in
40,141.39 40,141.39
this period
(1) Provision
(2) Other
40,141.39 40,141.39
increases
3. Decrease in
1,920.00 40,141.39 42,061.39
this period
(1) Disposal or
1,920.00 1,920.00
retirement
(2) Other
40,141.39 40,141.39
decrease
4. Closing
79,843.20 16,626.30 96,469.50
balance
IV. Book value
1. Closing
514,010,942.19 29,472,354.64 4,918,132.66 19,922,229.50 95,090,638.62 663,414,297.61
book value
2. Opening
325,928,083.42 31,784,580.68 5,418,958.66 16,955,511.13 101,239,078.74 481,326,212.63
book value
(2) Fixed assets without ownership certificate
In RMB
Item Book value Reason
Houses in Urumuqi for offsetting debt 497,716.11 Historical reasons
Yuehai Office Building C 502 124,562.61 Historical reasons
Others:
①On December 31, 2021, the net value of the Company's houses and buildings of RMB115,695,967.29 has been mortgaged to the
loan of China Construction Bank Shenzhen OCT sub branch; of which RMB69,852,869.05 was released on January 21, 2022
because the corresponding loan had been repaid.
② In the change of the current period, houses and other buildings increased by RMB28,574,737.36, of which RMB15,757,032.00
was increased due to the need of the Company's operation and development; The subsidiary Fangda Jianke received the mortgaged
property and completed the property right certificate, resulting in an increase of RMB12,817,705.36 yuan.
③ In the change of the current period, houses and other buildings decreased by RMB7,840,020.00, which was caused by the transfer
of some houses from self use to external lease due to the needs of the Company's business development.
(3) Disposal of fixed assets
In RMB
200
Annual Report 2021 of China Fangda Group Co., Ltd.
Item Closing balance Opening balance
Jiangxi new material South Korea
1,891,111.12
composite aluminum plate production line
Total 1,891,111.12
18. Construction in process
In RMB
Item Closing balance Opening balance
Construction in process 11,642,444.21 168,626,803.01
Total 11,642,444.21 168,626,803.01
(1) Construction in progress
In RMB
Item Closing balance Opening balance
Remaining book Impairment Book value Remaining Impairment Book value
value provision book value provision
Construction and 11,642,444.21 11,642,444.21
decoration of self
use part of
Nanchang Fangda
Center
Construction and 78,213,965.55 78,213,965.55
decoration of
self-use part of
Building 1 of
Fangda Town
Fangda Group 90,101,031.20 90,101,031.20
East China
Construction Base
Project
Others 311,806.26 311,806.26
Total 11,642,444.21 11,642,444.21 168,626,803.01 168,626,803.01
(2) Changes in major construction in process in this period
In RMB
Item Budget Openi Increas Amou Other Closin Propor Project Accum Includi Interes Capital
ng e in nt decrea g tion of progre ulative ng: t source
201
Annual Report 2021 of China Fangda Group Co., Ltd.
balanc this transfe se in balanc accum ss capital capital capital
e period r-in to this e ulative ized ized ization
fixed period engine interes interes rate
assets ering t t for
in this invest the
period ment current
in the period
budget
Constr 13,000 11,642 11,642 89.56 In 282,35 44,306 5.42% Loans
uction ,000.0 ,444.2 ,444.2 % constr 7.24 .27 from
and 0 1 1 uction financia
decora l
tion of instituti
self ons+
use self-ow
part of ned
Nanch fund
ang
Fangd
a
Center
Constr 82,840 78,213 3,541, 81,755 98.69 Compl
uction ,000.0 ,965.5 287.56 ,253.1 % eted
and 0 5 1
decora
tion of
self-us
e part
of
Buildi
ng 1 of
Fangd
a
Town
Fangd 105,06 90,101 11,184 100,36 922,93 95.53 Compl 3,862, 1,226, 5.72%
a 0,000. ,031.2 ,191.2 2,286. 5.78 % eted 501.30 652.23
Group 00 0 0 62
East
China
Constr
uction
Base
Project
202
Annual Report 2021 of China Fangda Group Co., Ltd.
Total 200,90 168,31 26,367 182,11 922,93 11,642 -- -- 4,144, 1,270, --
0,000. 4,996. ,922.9 7,539. 5.78 ,444.2 858.54 958.50
00 75 7 73 1
19. Use right assets
Note: to be filled in by the company implementing the new leasing standards.
In RMB
Item Houses & buildings Transportation facilities Total
I. Original book value:
1. Opening balance 4,524,903.57 1,319,251.12 5,844,154.69
2. Increase in this period 32,550,386.60 32,550,386.60
3. Decrease in this period
4. Closing balance 37,075,290.17 1,319,251.12 38,394,541.29
II. Accumulative depreciation
1. Opening balance
2. Increase in this period 6,344,621.50 609,063.25 6,953,684.75
(1) Provision 6,344,621.50 609,063.25 6,953,684.75
3. Decrease in this period
4. Closing balance 6,344,621.50 609,063.25 6,953,684.75
III. Impairment provision
1. Opening balance
2. Increase in this period
3. Decrease in this period
4. Closing balance
IV. Book value
1. Closing book value 30,730,668.67 710,187.87 31,440,856.54
2. Opening book value 4,524,903.57 1,319,251.12 5,844,154.69
Others:
The depreciation amount of use right assets in 2021 is RMB6,953,684.75.
20. Intangible assets
(1) Intangible assets
In RMB
Item Land using right Patent Software Total
203
Annual Report 2021 of China Fangda Group Co., Ltd.
I. Book value
1. Opening balance 80,404,737.13 8,982,747.17 19,358,441.10 108,745,925.40
2. Increase in this 6,603.77 2,274,654.85 2,281,258.62
period
(1) Purchase 6,603.77 2,274,654.85 2,281,258.62
3. Decrease in this 5,257.52 5,257.52
period
(1) Disposal 5,257.52 5,257.52
4. Closing balance 80,404,737.13 8,989,350.94 21,627,838.43 111,021,926.50
II. Accumulative
amortization
1. Opening balance 15,075,529.76 8,472,024.78 7,996,759.99 31,544,314.53
2. Increase in this 2,295,341.24 180,605.15 1,801,952.75 4,277,899.14
period
(1) Provision 2,295,341.24 180,605.15 1,801,952.75 4,277,899.14
3. Decrease in this
period
4. Closing balance 17,370,871.00 8,652,629.93 9,798,712.74 35,822,213.67
III. Impairment provision
1. Opening balance
2. Increase in this
period
3. Decrease in this
period
4. Closing balance
IV. Book value
1. Closing book value 63,033,866.13 336,721.01 11,829,125.69 75,199,712.83
2. Opening book value 65,329,207.37 510,722.39 11,361,681.11 77,201,610.87
21. Long-term amortizable expenses
In RMB
Item Opening balance Increase in this Amortized Other decrease Closing balance
period amount in this
period
Xuanfeng Chayuan 1,084,628.66 56,101.56 1,028,527.10
village and Zhuyuan
village land transfer
204
Annual Report 2021 of China Fangda Group Co., Ltd.
compensation
Reconstruction 347,140.98 115,713.60 231,427.38
project of sample
room
Membership fee 413,749.88 15,000.00 235,000.08 193,749.80
Waterproofing works 631,470.05 158,583.96 472,886.09
for employee
dormitories
Management 407,478.31 194,690.26 423,702.49 178,466.08
consulting service fee
Warehouse addition 211,926.63 60,550.44 151,376.19
and renovation project
Dahuaxin Dongguan 360,856.24 180,428.16 180,428.08
Songshanhu rubber
area interlayer
transformation
Training management 101,650.94 101,650.94
platform service fee
Factory wall painting 218,332.80 45,964.80 172,368.00
and rolling shutter
door engineering
Property insurance 397,497.12 84,625.00 244,752.13 237,369.99
premium
Plant ground 406,755.71 87,162.00 319,593.71
reconstruction project
High voltage network 922,935.78 128,185.55 794,750.23
access fee of East
China base
Others 1,718,368.74 290,541.17 1,427,827.57
Total 4,581,487.32 2,935,619.78 2,128,336.88 5,388,770.22
22. Differed income tax assets and differed income tax liabilities
(1) Non-deducted deferred income tax assets
In RMB
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
205
Annual Report 2021 of China Fangda Group Co., Ltd.
Assets impairment
257,631,149.84 48,121,014.85 263,568,017.94 38,503,124.46
provision
Unrealized profit of
281,712,399.14 55,842,834.37 135,859,744.95 33,964,936.24
internal transactions
Deductible loss 194,235,656.90 44,060,479.20 122,522,156.58 29,105,371.97
Credit impairment
216,539,086.13 34,918,828.89 212,735,093.27 44,515,085.13
provision
Unrealizable gross profit 114,199,793.34 27,967,001.62 130,105,754.96 31,898,500.96
Anticipated liabilities 6,347,809.40 1,161,300.00 33,425,500.13 7,715,527.38
Deferred earning 3,674,964.26 551,244.65 2,314,029.86 342,765.63
Change in fair value 1,079,130.19 161,869.53 1,520,569.70 228,085.49
Accrued expenses and
8,914,405.11 1,339,159.89 1,679,786.49 416,426.25
others
Total 1,084,334,394.31 214,123,733.00 903,730,653.88 186,689,823.51
(2) Non-deducted deferred income tax liabilities
In RMB
Closing balance Opening balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
difference liabilities difference liabilities
Change in fair value 4,199,023,889.76 1,049,649,013.70 4,126,941,042.59 1,031,097,491.50
Acquire premium to form
1,535,605.47 383,901.37 1,535,605.47 383,901.37
inventory
Estimated gross margin
when Fangda Town
records income, but does 31,539,658.09 7,884,914.52
not reach the taxable
income level
Rental income 34,856,116.84 8,714,029.21 26,439,158.17 6,609,789.56
Total 4,266,955,270.16 1,066,631,858.80 4,154,915,806.23 1,038,091,182.43
(3) Net deferred income tax assets or liabilities listed
In RMB
Offset balance of Deferred income tax Offset balance of
Deferred income tax
deferred income tax assets and liabilities at deferred income tax
Item assets and liabilities at
assets or liabilities after the beginning of the assets or liabilities after
the end of the period
offsetting period offsetting
206
Annual Report 2021 of China Fangda Group Co., Ltd.
Deferred income tax
214,123,733.00 186,689,823.51
assets
Deferred income tax
1,066,631,858.80 1,038,091,182.43
liabilities
(4) Details of unrecognized deferred income tax assets
In RMB
Item Closing balance Opening balance
Deductible temporary difference 554,677.54 130,889.01
Deductible loss 10,345,101.90 7,336,481.23
Total 10,899,779.44 7,467,370.24
(5) Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
Year Closing amount Opening amount Remarks
2022 1,233,589.22 1,270,623.72
2023 4,575,983.46 4,575,983.46
2024 1,276,235.76 1,276,235.76
2025 213,129.83 213,638.29
2026 3,046,163.63
Total 10,345,101.90 7,336,481.23 --
23. Other non-current assets
In RMB
Item Closing balance Opening balance
Remaining book Impairment Book value Remaining book Impairment Book value
value provision value provision
Contract assets 72,288,658.32 7,952,729.45 64,335,928.87 81,503,073.42 6,417,492.1 75,085,581.31
1
Prepaid house and 35,693,402.77 35,693,402.77 29,132,495.10 29,132,495.10
equipment amount
Certificate of 306,738,886.82 306,738,886.8
deposit 2
Others 1,088,296.93 1,088,296.93 603,385.14 603,385.14
207
Annual Report 2021 of China Fangda Group Co., Ltd.
Total 415,809,244.84 7,952,729.45 407,856,515.3 111,238,953.66 6,417,492.1 104,821,461.55
9 1
Others:
Other non-current assets at the end of the period increased by 289.10% compared with the beginning of the period, mainly due to the
increase of long-term large amount certificates of deposit.
24. Short-term borrowings
(1) Classification of short-term borrowings
In RMB
Item Closing balance Opening balance
Loan by pledge 58,450,232.49 30,045,466.66
Guarantee loan 10,013,291.67 200,013,291.68
Credit borrow 302,354,444.46 346,029,354.19
Discount borrowing of acceptance bills 916,656,430.03 472,162,215.09
Total 1,287,474,398.65 1,048,250,327.62
Notes to classification of short-term borrowings
At the end of the period, the Company provides guarantee for the subsidiary Kechuangyuan Software; Among the pledged loans at
the end of the period, the balance of RMB50,068,888.89 was guaranteed by the subsidiary Fangda Zhichuang Technology Co., Ltd.
with three invention patents and the guarantee provided by Shenzhen Hi-tech Financing Investment Guarantee Co., Ltd., and the
balance of RMB8,381,343.60 yuan was guaranteed by the pledge of accounts receivable provided by the subsidiary Fangda
Zhichuang Technology Co., Ltd.
25. Derivative financial liabilities
In RMB
Item Closing balance Opening balance
Forward foreign exchange contract 11,871.20 915,234.93
Total 11,871.20 915,234.93
26. Notes payable
In RMB
Type Closing balance Opening balance
Commercial acceptance 185,747,490.66 215,002,061.17
Bank acceptance 663,697,808.43 651,222,454.25
Total 849,445,299.09 866,224,515.42
The total amount of payable bills that have matured but not been paid at the end of the period is RMB0.00.
208
Annual Report 2021 of China Fangda Group Co., Ltd.
27. Account payable
(1) Account payable
In RMB
Item Closing balance Opening balance
Account repayable and engineering
942,689,466.48 884,009,122.99
repayable
Construction payable 58,406,046.64 98,783,841.73
Payable installation and implementation
327,879,727.83 295,439,323.67
fees
Others 14,148,245.02 4,450,130.01
Total 1,343,123,485.97 1,282,682,418.40
(2) Significant payables aging more than 1 year
In RMB
Item Closing balance Reason
Supplier 1 30,659,989.51 Not mature
Supplier 2 7,322,582.41 Not mature
Supplier 3 5,357,978.21 Not mature
Supplier 4 3,414,887.79 Not mature
Supplier 5 3,298,479.36 Not mature
Total 50,053,917.28 --
28. Prepayment received
(1) Prepayment received
In RMB
Item Closing balance Opening balance
Rental 1,280,482.93 1,544,655.62
Total 1,280,482.93 1,544,655.62
29. Contract liabilities
In RMB
Item Closing balance Opening balance
Project funds collected in advance 172,696,504.61 195,922,455.76
209
Annual Report 2021 of China Fangda Group Co., Ltd.
Real estate sales payment 4,082,802.11 62,466,576.69
Material loan 2,485,989.04 1,408,738.82
Others 921,581.39 5,689,341.85
Total 180,186,877.15 265,487,113.12
The amount and reason for the significant change in the book value during the reporting period
In RMB
Item Change Reason
Project funds collected in It is mainly due to the decrease of advance receipts due to the
-23,225,951.15
advance performance of engineering contract obligations
This is mainly due to the recognition of income when Nanchang
Real estate sales payment -58,383,774.58 Fangda Center project meets the conditions for occupation in this
period
Total -81,609,725.73 ——
The Company needs to comply with the disclosure requirements of the real estate industry in the Guidelines for the Self-discipline
and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.
Payment received from top 5 presales projects:
There are no pre-sale projects in this period.
30. Employees’ wage payable
(1) Employees’ wage payable
In RMB
Item Opening balance Increase Decrease Closing balance
1. Short-term
60,855,743.99 384,920,078.63 376,986,073.01 68,789,749.61
remuneration
2. Retirement pension
program-defined 38,452.79 16,510,121.43 16,394,179.88 154,394.34
contribution plan
3. Dismiss compensation 944,562.29 817,692.29 126,870.00
Total 60,894,196.78 402,374,762.35 394,197,945.18 69,071,013.95
(2) Short-term remuneration
In RMB
Item Opening balance Increase Decrease Closing balance
1. Wage, bonus, allowance 60,093,523.10 351,256,656.43 343,862,435.61 67,487,743.92
and subsidies
2. Employee welfare 14,282,804.33 13,909,540.13 373,264.20
210
Annual Report 2021 of China Fangda Group Co., Ltd.
3. Social insurance 150.39 9,466,815.81 9,419,801.98 47,164.22
Including: medical 5,937,400.83 5,895,981.71 41,419.12
insurance
Labor injury 150.39 261,078.55 258,180.74 3,048.20
insurance
Breeding 683,578.57 680,881.67 2,696.90
insurance
Unemployment 2,584,757.86 2,584,757.86
insurance
4. Housing fund 41,608.00 8,410,342.22 8,374,708.22 77,242.00
5. Labor union budget and 564,651.81 1,411,872.28 1,407,081.59 569,442.50
staff education fund
6. Short-term paid leave 155,810.69 91,587.56 12,505.48 234,892.77
Total 60,855,743.99 384,920,078.63 376,986,073.01 68,789,749.61
(3) Defined contribution plan
In RMB
Item Opening balance Increase Decrease Closing balance
1. Basic pension 38,302.40 16,000,671.30 15,888,450.66 150,523.04
2. Unemployment
150.39 509,450.13 505,729.22 3,871.30
insurance
Total 38,452.79 16,510,121.43 16,394,179.88 154,394.34
31. Taxes payable
In RMB
Item Closing balance Opening balance
VAT 7,130,265.98 4,413,646.55
Enterprise income tax 32,790,801.61 14,293,844.57
Personal income tax 1,525,425.02 1,118,590.56
City maintenance and construction tax 1,153,514.56 814,163.97
Land using tax 257,316.97 242,187.59
Property tax 1,133,817.11 317,791.55
Education surtax 582,762.56 432,267.04
Local education surtax 246,199.28 169,248.62
Land VAT 22,186,857.45 337,655,257.61
211
Annual Report 2021 of China Fangda Group Co., Ltd.
Others 273,686.68 838,881.79
Total 67,280,647.22 360,295,879.85
Others:
The tax payable at the end of the period decreased by 81.33% compared with that at the beginning of the period, which is mainly due
to the payment of land value-added tax by the subsidiary Fangda Real Estate, which meets the liquidation conditions for paying land
value-added tax.
32. Other payables
In RMB
Item Closing balance Opening balance
Dividend payable 6,000,000.00
Other payables 126,903,098.08 147,635,067.86
Total 126,903,098.08 153,635,067.86
(1) Dividend payable
In RMB
Item Closing balance Opening balance
Common share dividend 6,000,000.00
Total 6,000,000.00
(2) Other payables
1) Other payables presented by nature
In RMB
Item Closing balance Opening balance
Performance and quality deposit 47,863,587.46 37,137,147.11
Deposit 20,376,442.13 17,623,656.22
Reserved expense 4,048,028.82 10,861,930.30
Others 54,615,039.67 82,012,334.23
Total 126,903,098.08 147,635,067.86
(2) Significant payables aging more than 1 year
In RMB
Item Closing balance Reason
212
Annual Report 2021 of China Fangda Group Co., Ltd.
Shenzhen Yikang Real Estate Co. Ltd. 24,912,830.32 Payment paid as agreed in the contract
Total 24,912,830.32 --
33. Non-current liabilities due within 1 year
In RMB
Item Closing balance Opening balance
Long-term loans due within 1 year 65,634,120.55 103,359,833.57
Lease liabilities due within one year 12,784,437.21
Total 78,418,557.76 103,359,833.57
34. Other current liabilities
In RMB
Item Closing balance Opening balance
Unterminated notes receivable 25,877,995.14 82,447,039.97
Substituted money on VAT 22,220,366.63 25,241,385.72
Total 48,098,361.77 107,688,425.69
Others:
Other current liabilities at the end of the period decreased by 55.34% compared with that at the beginning of the period, mainly due
to the decrease of notes receivable not derecognized this year.
35. Long-term borrowings
(1) Classification of long-term borrowings
In RMB
Item Closing balance Opening balance
Loan by pledge 231,295,035.65
Guaranteed and mortgage loans 467,742,011.11
Guarantee, mortgage and pledge loan 931,392,109.44 971,476,260.27
Less: Long-term loans due within 1 year 65,634,120.55 103,359,833.57
Total 1,333,500,000.00 1,099,411,462.35
Notes to classification of long-term borrowings:
The pledge in the above guarantee, mortgage and pledge loans is the pledge of 100% equity of Fangda Real Estate, a subsidiary held
by the Company, and the rent receivable of the leased property of Fangda Town, a self-held party; The above guarantee and mortgage
loans are guaranteed by the company and its subsidiary Fangda Real Estate, and some properties of Fangda Plaza held by its
subsidiary Fangda Real Estate.
Other note, including interest rate range:
213
Annual Report 2021 of China Fangda Group Co., Ltd.
The interest rate period of long-term loan is 3%-7%.
36. Lease liabilities
In RMB
Item Closing balance Opening balance
Rental payments for houses, buildings and
19,152,093.31 5,844,154.69
means of transport
Total 19,152,093.31 5,844,154.69
37. Long-term payables
In RMB
Item Closing balance Opening balance
Long-term payable 183,640,219.18
Total 183,640,219.18
(1) Long term accounts payable listed by nature
In RMB
Item Closing balance Opening balance
Disposal of equity repurchase 183,640,219.18
Others:
For details of the disposal of equity repurchase funds, see 2. Description in the transaction in which the owner's equity shares of the
subsidiary changes and still controls the subsidiary in Chapter X, IX. equity in other entities.
38. Anticipated liabilities
In RMB
Item Closing balance Opening balance Reason
Pending lawsuit 2,091,286.00 27,017,023.60 Delay in handling certificate of
Product quality warranty 4,256,523.40 6,408,476.53 Product quality warranty
Total 6,347,809.40 33,425,500.13 --
Note: including related significant assumptions and estimates for anticipated liabilities
For details of the matters involved in delaying the handling of the property right certificate, see ③ of 2. Contingencies (1) in XIII.
Commitments and contingencies.
214
Annual Report 2021 of China Fangda Group Co., Ltd.
39. Deferred earning
In RMB
Item Opening balance Increase Decrease Closing balance Reason
See the following
Government subsidy 9,168,492.17 1,000,000.00 601,966.57 9,566,525.60
table
Total 9,168,492.17 1,000,000.00 601,966.57 9,566,525.60 --
Items involving government subsidies:
In RMB
Liabilities Opening Amount of Amou Other Costs Other Closing Related to
balance new subsidy nt misc. offset in change balance assets/earn
includ gains the period ing
ed in recorded
non-o in this
perati period
ng
revenu
e
Railway transport 58,749.53 18,904.32 39,845.21 Assets-rel
screen door ated
controlling system
and information
transmission
technology
Major investment 1,566,667.1 57,142.80 1,509,524. Assets-rel
project prize from 0 30 ated
Industry and
Trade
Development
Division of
Dongguan
Finance Bureau
Distributed PV 368,750.21 24,999.96 343,750.25 Assets-rel
power generation ated
project subsidy
sponsored by
Dongguan
Reform and
Development
Commission
Subsidized land 173,553.23 3,725.64 169,827.59 Assets-rel
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transfer ated
Special subsidy 800,000.00 33,333.35 766,666.65 Assets-rel
for industrial ated
transformation,
upgrading and
development
Enterprise 420,000.00 48,000.00 372,000.00 Assets-rel
informationization ated
subsidy project of
Shenzhen Small
and Medium
Enterprise Service
Agency
National Industry 5,685,712.1 307,728.6 5,377,983. Assets-rel
Revitalization and 0 0 50 ated
Technology
Renovation
Project fund
Shenzhen Science 95,060.00 95,060.00 Earning-re
and Technology lated
Innovation
Committee
Technology
Innovation
Subsidy
Energy saving and 1,000,000.0 13,071.90 986,928.10 Assets-rel
environmental 0 ated
protection metal
curtain wall
production
technology
transformation
project
40. Capital share
In RMB
Opening Change (+,-) Closing
balance balance
Issued new Bonus shares Transferred Others Subtotal
shares from
reserves
Total of 1,088,278,951. -14,404,724. -14,404,724. 1,073,874,22
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Annual Report 2021 of China Fangda Group Co., Ltd.
capital shares 00 00 00 7.00
Others:
① The decrease in share capital was due to the repurchase and cancellation of B shares by the Company during the reporting period.
② As of December 31, 2021, there are 2,302,093 shares with limited sales conditions in the closing balance, all of which are held by
senior executives.
41. Capital reserve
In RMB
Item Opening balance Increase Decrease Closing balance
Capital premium (share
19,005,491.05 9,000,000.00 10,005,491.05
capital premium)
Other capital reserves 1,454,097.35 1,454,097.35
Total 20,459,588.40 9,000,000.00 11,459,588.40
Other note, including explanation about the reason of the change:
The decrease of capital reserve in the current period was caused by the acquisition of equity of Yunzhu Industrial
under the same control.
42. Shares in stock
In RMB
Item Opening balance Increase Decrease Closing balance
Shares in stock 42,748,530.12 42,748,530.12
Total 42,748,530.12 42,748,530.12
Other note, including explanation about the reason of the change:
At the second meeting of the ninth board of directors held on June 23, 2020, the Company considered and approved the proposal to
repurchase part of the Company's domestic listed foreign shares (B shares) in 2020. From July 23, 2020 to September 22, 2020,
14,404,724 shares were repurchased through centralized competitive bidding, the highest price was HK $3.47/share and the lowest
price was HK $3.16/share. The actual payment was HK $48,359,819.24 (including transaction costs), which was included in treasury
shares of RMB 42,748,530.12. On April 23, 2021, the Company completed the cancellation of the repurchase of 14,404,724 B shares,
reduced the share capital of 14,404,724 shares and offset the surplus reserve of RMB28,343,806.12.
43. Other miscellaneous income
In RMB
Amount occurred in the current period
Opening Amount Less: amount Less: Less: After-tax After-tax Closing
Item
balance before written into amount Income amount amount balance
income tax other gains written tax attributed attributed
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and into other expenses to the to
transferred gains and parent minority
into gain/loss transferred shareholde
in previous into rs
terms gain/loss
in
previous
terms
1. Other misc. incomes that
-11,670,984. -3,447,654 -552,919.7 -2,894,735 -14,565,
cannot be re-classified into gain
54 .94 0 .24 719.78
and loss
Fair value change of investment -11,670,984. -3,447,654 -552,919.7 -2,894,735 -14,565,
in other equity tools 54 .94 0 .24 719.78
2. Other misc. incomes that will 13,749,152. 49,217,61 13,116,45 36,142,43 49,891,5
-41,277.66
be re-classified into gain and loss 17 7.84 6.11 9.39 91.56
5,150,331.2 -5,001,496 -750,224.5 -4,224,144 926,186.
Cash flow hedge reserve -27,127.66
9 .87 4 .67 62
Translation difference of -1,247,607 -1,233,457 -1,391,1
-157,732.58 -14,150.00
foreign exchange statement .89 .89 90.47
Investment real estate measured 8,756,553.4 55,466,72 13,866,68 41,600,04 50,356,5
at fair value 6 2.60 0.65 1.95 95.41
2,078,167.6 45,769,96 12,563,53 33,247,70 35,325,8
Other miscellaneous income -41,277.66
3 2.90 6.41 4.15 71.78
44. Surplus reserves
In RMB
Item Opening balance Increase Decrease Closing balance
Statutory surplus
106,783,436.96 885,309.59 28,343,806.12 79,324,940.43
reserves
Total 106,783,436.96 885,309.59 28,343,806.12 79,324,940.43
Note, including explanation about the reason of the change:
(1) The increase of surplus reserve in the current period is due to the withdrawal of statutory surplus reserve by the Company at the
rate of 10% of the net profit in the current period in accordance with the Company law and the articles of association.
(2) The decrease of surplus reserve in the current period is due to the decrease of surplus reserve of RMB28,343,806.12 when the
cost of treasury shares is higher than the corresponding share capital.
45. Retained profit
In RMB
218
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Item Current period Last period
Adjustment on retained profit of previous period 4,215,005,541.52 3,898,626,177.99
Total of retained profit at beginning of year
2,837,784.25 10,342,800.77
adjusted (+ for increase, - for decrease)
Retained profit adjusted at beginning of year 4,217,843,325.77 3,908,968,978.76
Plus: Net profit attributable to owners of the
222,168,142.53 389,344,290.74
parent
Less: Statutory surplus reserves 885,309.59 11,258,155.90
Common share dividend payable 68,723,947.55
Others 115,070,899.38 487,840.28
Closing retained profit 4,324,055,259.33 4,217,843,325.77
Notes:
(1) Details of retained profit adjusted at beginning of the period: Due to the change of merger scope caused by the acquisition of
Yunzhu Industrial under the same control, the undistributed profit at the beginning of 2021 is RMB2837784.25 yuan and the
undistributed profit at the beginning of 2020 is RMB 10342800.77.
(2) Other decreases of RMB115,070,899.38 in the current period are due to the acquisition of the equity of Yunzhu Industrial
Company under the same control.
46. Operational revenue and costs
In RMB
Amount occurred in the current period Occurred in previous period
Item
Income Cost Income Cost
Main business 3,409,535,038.10 2,737,323,045.81 2,880,515,174.41 2,394,211,303.50
Other businesses 148,189,359.44 23,977,511.67 119,676,599.22 22,363,581.82
Total 3,557,724,397.54 2,761,300,557.48 3,000,191,773.63 2,416,574,885.32
Is the lower of the net profit before and after deducting the non recurring profit and loss negative
□ Yes √ No
Income information:
In RMB
Contract Segment Segment 2 - Segment 3 - Segment 4 - Segment 5 - Total
classificatio 1-curtain wall rail transit real estate new energy other segments
n division segment
Type of 2,584,704,014.9 534,310,567.8 407,329,798.1 19,285,405.44 12,094,611.13 3,557,724,397.5
product 8 8 1 4
Including:
Curtain wall 2,584,704,014.9 2,584,704,014.9
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system and 8 8
materials
Subway 534,310,567.8 534,310,567.88
screen door 8
and service
Real estate 407,329,798.1 407,329,798.11
sales 1
PV power 19,285,405.44 19,285,405.44
generation
products
Others 12,094,611.13 12,094,611.13
Total 2,584,704,014.9 534,310,567.8 407,329,798.1 19,285,405.44 12,094,611.13 3,557,724,397.5
8 8 1 4
Information related to performance obligations:
For curtain wall materials, real estate and other commodity sales transactions, the Company completes the
performance obligations when the customer obtains the control of the relevant commodities; for providing building
curtain wall, Metro screen door design, production and installation and other service transactions, the Company
confirms the completed performance obligations according to the performance progress during the whole service
period. The contract price of the Company is usually due within one year, and there is no significant financing
component.
Information related to the transaction price allocated to the remaining performance obligations:
The amount of revenue corresponding to the performance obligations that have been signed, but not yet performed or not yet
performed at the end of the reporting period is 7,405,953,774.36 yuan, of which 3,837,706,200.29 yuan is expected to be recognized
in 2022, and 2,306,269,667.21 yuan is expected to be recognized in 2023, 1,261,977,906.86 yuan is expected to be recognized in
2024 and beyond.
Others:
The Company needs to comply with the disclosure requirements of the real estate industry in the Guidelines for the Self-discipline
and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.
Top-5 projects in terms of income received and recognized in the reporting period:
In RMB
No. Item Balance
1 Fangda Town 124,071,281.08
2 Nanchang Fangda Center 92,724,919.28
47. Taxes and surcharges
In RMB
Item Amount occurred in the current period Occurred in previous period
City maintenance and construction tax 6,814,244.49 6,001,565.57
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Education surtax 4,880,262.78 4,341,523.68
Property tax 6,799,263.40 4,396,188.94
Land using tax 1,642,629.16 1,544,528.60
Stamp tax 2,798,854.45 1,870,381.77
Land VAT 49,306,779.63 -240,313,311.62
Others 84,940.08 38,233.02
Total 72,326,973.99 -222,120,890.04
Others:
The increase of taxes and surcharges in this year over the previous year is mainly due to the land value-added
tax liquidation of Fangda Town project developed by Fangda Real Estate, a subsidiary of the Company, and the
reversal of the land value-added tax accrued in previous years.
48. Sales expense
In RMB
Item Amount occurred in the current period Occurred in previous period
Labor costs 26,549,119.18 20,873,521.84
Sales agency fee 9,750,617.96 4,290,201.20
Entertainment expense 4,798,777.96 3,368,656.72
Travel expense 1,662,959.19 1,210,588.86
Advertisement and promotion fee 1,673,817.72 4,848,901.77
Rental 361,878.16 1,251,225.57
Amortization of right of use assets 1,021,131.68
Office costs 1,040,668.24 983,040.25
Material consumption 412,933.68 559,077.10
Warranty expense 9,276,474.69
Others 3,329,236.27 2,415,992.25
Total 59,877,614.73 39,801,205.56
Others:
The sales expenses of this year increased by 50.44% over the previous year, mainly due to the increase of salary, the increase of real
estate sales agency fees of the subsidiary Jiangxi Real Estate and the reclassification of quality assurance expenses from management
expenses to sales expenses this year.
49. Management expense
In RMB
Item Amount occurred in the current period Occurred in previous period
221
Annual Report 2021 of China Fangda Group Co., Ltd.
Labor costs 106,520,063.46 87,804,788.88
Maintenance costs 835,325.05 12,178,371.33
Agencies 20,495,270.86 11,615,777.26
Depreciation and amortization 11,344,295.40 8,541,764.39
Office expense 5,510,310.38 6,606,019.03
Entertainment expense 4,984,309.28 3,813,438.99
Rental 1,911,070.57 3,527,230.36
Amortization of right of use assets 2,603,309.92
Lawsuit 540,860.07 346,458.93
Travel expense 2,208,994.72 1,757,640.29
Property management fee 1,836,776.97 3,278,088.11
Water and electricity 925,114.24 490,992.10
Material consumption 1,161,107.24 245,286.34
Others 8,566,850.67 3,159,468.02
Total 169,443,658.83 143,365,324.03
50. R&D cost
In RMB
Item Amount occurred in the current period Occurred in previous period
Labor costs 86,627,499.60 75,317,110.43
Material costs 49,445,691.44 53,248,838.53
Agencies 5,384,263.67 6,368,175.89
Depreciation costs 1,487,661.18 1,584,926.61
Amortization of intangible assets 1,003,289.28 1,226,447.53
Travel expense 476,622.69 242,760.29
Rental 55,053.80 18,674.31
Others 8,493,500.72 5,585,936.86
Total 152,973,582.38 143,592,870.45
51. Financial expense
In RMB
Item Amount occurred in the current period Occurred in previous period
Interest expense 106,019,889.08 97,682,162.85
Including: interest expense of lease 931,218.41
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liabilities
Less: interest capitalization 4,297,120.98 13,189,723.94
Less: discount government subsidies 3,853,900.00 2,516,250.00
Less: Interest income 16,575,629.28 14,660,320.28
Net interest expenditure 81,293,238.82 67,315,868.63
Exchange net loss 1,933,113.39 1,310,762.38
Acceptant discount 13,489,673.65 13,143,667.19
Commission charges and others 6,285,570.07 5,242,785.23
Total 103,001,595.93 87,013,083.43
52. Other gains
In RMB
Source Amount occurred in the current Occurred in previous period
period
Government subsidies related to deferred 506,906.57 1,743,815.23
income (related to assets)
Government subsidies related to deferred 104,940.00
income (related to income)
Government subsidies directly included in 12,813,082.60 12,712,264.04
current profits and losses (related to income)
Other items related to daily activities and 712,949.92 1,065,431.54
included in other income
Total 14,032,939.09 15,626,450.81
53. Investment income
In RMB
Item Amount occurred in the current period Occurred in previous period
Gains from long-term equity investment
-683,431.81 -1,319,862.88
measured by equity
Investment income of trading financial assets
72,364.60 -50,000.00
during the holding period
Investment income from disposal of trading
5,487,895.02 8,865,272.09
financial assets
Financial assets derecognised as a result of
-6,336,161.86 -6,148,967.92
amortized cost
Others 69,798.87
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Annual Report 2021 of China Fangda Group Co., Ltd.
Total -1,459,334.05 1,416,240.16
54. Income from fair value fluctuation
In RMB
Source of income from fluctuation of fair
Amount occurred in the current period Occurred in previous period
value
Transactional financial assets 47,216.42
Investment real estate measured at fair
20,921,813.65 19,205,841.18
value
Other non-current financial assets 2,500,222.08 15,458.14
Total 23,422,035.73 19,268,515.74
55. Credit impairment loss
In RMB
Item Amount occurred in the current period Occurred in previous period
Bad debt loss of other receivables 1,421,794.98 1,175,666.47
Bad debt loss of notes receivable -2,584,709.89
Bad debt loss of account receivable -6,761,080.52 28,521,880.10
Total -7,923,995.43 29,697,546.57
Others:
The decrease of credit impairment loss in this year compared with that in the previous year is mainly due to
the increase of changes in accounting estimates of the Company in the previous year.
56. Assets impairment loss
In RMB
Item Amount occurred in the current period Occurred in previous period
Contract asset impairment loss 7,181,339.41 53,075,851.07
Total 7,181,339.41 53,075,851.07
Others:
The decrease of asset impairment loss in this year compared with that in the previous year is mainly due to the
increase of changes in accounting estimates of the Company in the previous year.
57. Assets disposal gains
In RMB
Source Amount occurred in the current period Occurred in previous period
224
Annual Report 2021 of China Fangda Group Co., Ltd.
Disposition not classified as possession of
fixed assets to be sold, construction in
-2,291,048.05 -18,386.23
progress, productive biological assets and
intangible assets
Including: Fixed assets -2,291,048.05 -18,386.23
Gains or losses from disposal of other
-233,876.00
non-current assets
Total -2,291,048.05 -252,262.23
58. Non-business income
In RMB
Amount occurred in the current Amount accounted into the
Item Occurred in previous period
period current accidental gain/loss
Penalty income 420,185.19 251,537.00 420,185.19
Compensation received 31,106.99 61,960.00 31,106.99
Payable account not able to be
1,089,259.90 1,089,259.90
paid
Others 668,628.48 209,008.00 668,628.48
Total 2,209,180.56 522,505.00 2,209,180.56
59. Non-business expenses
In RMB
Amount occurred in the current Amount accounted into the
Item Occurred in previous period
period current accidental gain/loss
Donation 3,379,215.24 6,000,698.10 3,379,215.24
Loss from retirement os
324,982.26 289,575.87 324,982.26
damaged non-current assets
Penalty and overdue fine 71,556.64 14,164.60 71,556.64
Others 2,311,621.57 29,260,098.18 2,311,621.57
Total 6,087,375.71 35,564,536.75 6,087,375.71
60. Income tax expenses
(1) Details about income tax expense
In RMB
Item Amount occurred in the current period Occurred in previous period
225
Annual Report 2021 of China Fangda Group Co., Ltd.
Income tax expenses in this period 52,589,592.74 -44,337,868.47
Deferred income tax expenses -11,504,044.01 130,610,436.74
Total 41,085,548.73 86,272,568.27
(2) Adjustment process of accounting profit and income tax expense
In RMB
Item Amount occurred in the current period
Total profit 267,884,155.75
Income tax expenses calculated based on the legal (or applicable) tax rates 66,971,038.92
Impacts of different tax rates applicable for some subsidiaries -11,214,813.81
Impacts of income tax before adjustment -588,013.19
Impacts of non-deductible cost, expense and loss 4,415,279.62
Impacts of using deductible loss of unrecognized deferred income tax assets -9,309.46
Deductible temporary difference and deductible loss of unrecognized deferred 692,310.25
income tax assets
Additional deduction of R&D expense -19,351,801.55
Profit and loss of associates and joint ventures calculated using the equity 170,857.95
method
Income tax expenses 41,085,548.73
61. Other miscellaneous income
See Note VII 43.
62. Notes to the cash flow statement
(1) Other cash inflow related to operation
In RMB
Item Amount occurred in the current period Occurred in previous period
Interest income 9,836,742.46 14,659,486.95
Subsidy income 17,767,508.18 16,385,605.95
Net amount of margin such as Bill of
72,723,783.94 130,234,443.34
exchange
Retrieving of bidding deposits 13,479,226.26 3,740,836.61
Other operating accounts 6,245,160.75 5,238,482.11
Total 120,052,421.59 170,258,854.96
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Annual Report 2021 of China Fangda Group Co., Ltd.
(2) Other cash paid related to operation
In RMB
Item Amount occurred in the current period Occurred in previous period
Pocket expenses 149,859,536.10 72,644,885.18
Bidding deposit paid 32,427,745.97 65,260,110.98
Other trades 34,211,196.04 32,303,328.43
Total 216,498,478.11 170,208,324.59
(3) Other cash paid related to investment activities
In RMB
Item Amount occurred in the current period Occurred in previous period
Investment commission 50,000.00 135,741.00
Total 50,000.00 135,741.00
(4) Other cash received related to financing
In RMB
Item Amount occurred in the current period Occurred in previous period
Cash received from disposal of equity of
175,000,000.00
Fangda Zhichuang Technology Co., Ltd
Total 175,000,000.00
(5) Other cash paid related to financing activities
In RMB
Item Amount occurred in the current period Occurred in previous period
Certificate of deposit 300,000,000.00
Acquisition of equity of Yunzhu Industrial
125,388,100.00
under the same control
Financing fee 2,739,530.00
Principal and interest of lease liabilities 6,684,172.76
Bill of exchange, letter of credit and loan
32,448,838.96 121,280,000.00
deposit
Repurchase amount of B shares 142,856,912.25
Total 467,260,641.72 264,136,912.25
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63. Supplementary data of cash flow statement
(1) Supplementary data of cash flow statement
In RMB
Supplementary information Amount of the Current Term Amount of the Previous Term
1. Net profit adjusted to cash flow related to
-- --
business operations:
Net profit 226,798,607.02 389,483,036.98
Plus: Asset impairment provision 742,656.02 -82,773,397.64
Fixed asset depreciation, gas and
petrol depreciation, production goods 26,819,528.89 23,642,389.15
depreciation
Depreciation of right to use assets 6,953,684.75
Amortization of intangible assets 4,277,899.14 4,255,366.75
Amortization of long-term
2,128,336.88 1,313,939.81
amortizable expenses
Loss from disposal of fixed assets,
intangible assets, and other long-term assets 2,291,048.05 252,262.23
(―-― for gains)
Loss from fixed asset discard
324,982.26 289,575.87
(―-― for gains)
Loss from fair value fluctuation
-23,422,035.73 -19,268,515.74
(―-― for gains)
Financial expenses (―-― for gains) 120,641,621.99 99,390,960.03
Investment losses (―-― for gains) 1,459,334.05 -1,416,240.16
Decrease of deferred income tax
41,347,864.62 156,316,330.70
asset (―-― for increase)
Increase of deferred income tax
-29,843,820.61 -25,741,976.57
asset (―-― for increase)
Decrease of inventory (―-― for
48,193,389.26 -102,647,106.37
increase)
Decrease of operational receivable
-132,061,193.74 -243,340,854.10
items (―-― for increase)
Increase of operational receivable
-432,800,983.13 224,977,734.68
items (―-― for decrease)
Others 72,723,783.99 130,234,443.34
Cash flow generated by business -63,425,296.29 554,967,948.96
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Annual Report 2021 of China Fangda Group Co., Ltd.
operations, net
2. Major investment and financing activities
-- --
with no cash involved:
Debt transferred to assets
Convertible corporate bonds due within
one year
Fixed assets under finance leases
3. Net change in cash and cash equivalents: -- --
Balance of cash at period end 892,251,071.59 1,028,386,529.74
Less: Initial balance of cash 1,028,386,529.74 730,933,482.19
Add: Ending balance of cash
equivalents
Less: Ending balance of cash
equivalents
Net increase in cash and cash
-136,135,458.15 297,453,047.55
equivalents
(2) Composition of cash and cash equivalents
In RMB
Item Closing balance Opening balance
I. Cash 892,251,071.59 1,028,386,529.74
Including: Cash in stock 3,192.76 482.09
Bank savings can be used at any time 875,884,674.10 1,013,915,054.53
Other monetary capital can be used at
16,363,204.73 14,470,993.12
any time
III. Balance of cash and cash equivalents at
892,251,071.59 1,028,386,529.74
end of term
64. Assets with restricted ownership or use rights
In RMB
Item Closing book value Reason
Monetary capital 395,312,687.73 Various deposits
Notes receivable 25,964,425.17 Bills endorsed or discounted but not yet due
Fixed assets 115,695,967.29 Loan by pledge
Account receivable 45,503,561.84 Loan by pledge
Investment real estate 3,633,265,958.13 Loan by pledge
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Annual Report 2021 of China Fangda Group Co., Ltd.
Other non-current assets 306,738,886.82 Loan by pledge
100% stake in Fangda Property Development
Equity pledge 200,000,000.00
held by the Company
Total 4,722,481,486.98 --
65. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Closing foreign currency
Item Exchange rate Closing RMB balance
balance
Monetary capital -- -- 113,442,883.87
Including: USD 5,088,612.57 6.3757 32,443,467.16
Euro 2,514,424.27 7.2197 18,153,388.90
HK Dollar 45,651,878.18 0.8176 37,324,975.60
INR 18,431,685.37 0.0857 1,579,189.94
Vietnamese currency 235,116,660.00 0.0003 65,833.70
SGD 1,122,646.39 4.7179 5,296,533.40
AUD 4,019,795.58 4.6220 18,579,495.17
Account receivable -- -- 8,352,172.01
Including: USD 660,998.44 6.3757 4,214,327.75
AUD 699,878.45 4.6220 3,234,838.20
SGD 191,400.00 4.7179 903,006.06
Contract assets 6,184,563.06
Including: USD 946,121.67 6.3757 6,032,187.93
HK Dollar 186,368.80 0.8176 152,375.13
Other receivables 2,917,371.86
Including: USD 360,335.34 6.3757 2,297,390.03
HK Dollar 377,064.66 0.8176 308,288.07
INR 3,335,599.00 0.0857 285,787.45
AUD 5,605.00 4.6220 25,906.31
Account payable 6,904,570.90
Including: USD 998,696.58 6.3757 6,367,389.79
HK Dollar 47,031.03 0.8176 38,452.57
INR 5,820,963.89 0.0857 498,728.54
230
Annual Report 2021 of China Fangda Group Co., Ltd.
Other payables 439,985.55
Including: USD 2,139.94 6.3757 13,643.62
AUD 66,610.65 4.6220 307,874.42
HK Dollar 124,955.10 0.8176 102,163.29
Vietnamese currency 58,228,425.00 0.0003 16,304.22
(2) The note of overseas operating entities should include the main operation places, book keeping
currencies and selection basis. Where the book keeping currency is changed, the reason should also be
explained.
□ Applicable √ Inapplicable
66. Hedging
Hedging items and related tools, qualitative and quantitative information about hedging risks:
Type Hedged item Hedging tools Hedged risk
Cash flow Forward transaction Aluminum futures The price of raw materials has risen, leading
hedging of aluminum sheet contract to an increase in expected transaction
purchase procurement costs;
Forward foreign Forward foreign The depreciation of foreign currency leads
exchange exchange contract to the decrease of actual collection
transaction
67. Government subsidy
(1) Government subsidy profiles
In RMB
Amount accounted into the
Type Amount Item
current gain/loss
Major investment project prize from Industry and
Trade Development Division of Dongguan Finance 1,509,524.30 Deferred earning 57,142.80
Bureau
Distributed PV power generation project subsidy
sponsored by Dongguan Reform and Development 343,750.25 Deferred earning 24,999.96
Commission
Subsidized land transfer 169,827.59 Deferred earning 3,725.64
Special subsidy for industrial transformation,
766,666.65 Deferred earning 33,333.35
upgrading and development
National Industry Revitalization and Technology 5,377,983.50 Deferred earning 307,728.60
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Renovation Project fund
Enterprise informationization subsidy project of
Shenzhen Small and Medium Enterprise Service 372,000.00 Deferred earning 48,000.00
Agency
Railway transport screen door controlling system
39,845.21 Deferred earning 18,904.32
and information transmission technology
Energy saving and environmental protection metal
curtain wall production technology transformation 986,928.10 Deferred earning 13,071.90
project
VAT rebated into revenue 4,733,471.54 Other gains 4,733,471.54
Employment subsidy 109,458.39 Other gains 109,458.39
Technology research and development award of
Finance Bureau of Management Committee of 825,500.00 Other gains 825,500.00
Nanchang High-tech Development Zone
Childbearing subsidy 83,994.84 Other gains 83,994.84
Shenzhen R&D subsidy 956,000.00 Other gains 956,000.00
Shenzhen patent awards and subsidies 55,000.00 Other gains 55,000.00
Support for steady industrial growth in Shenzhen 637,000.00 Other gains 637,000.00
Shenzhen industrial added value award 664,600.00 Other gains 664,600.00
Reward for major taxpayers in Nanchang High Tech
200,000.00 Other gains 200,000.00
Zone
Nanchang High Tech Zone Engineering Technology
200,000.00 Other gains 200,000.00
Center award
Recognition and warehousing subsidy of high-tech
317,500.00 Other gains 317,500.00
enterprises
Shenzhen intellectual property subsidy 200,000.00 Other gains 200,000.00
Subsidy of Shenzhen science and technology
200,000.00 Other gains 200,000.00
support plan
Dongguan market development support subsidy 846,932.19 Other gains 846,932.19
Subsidy for integration of industrialization and
262,200.00 Other gains 262,200.00
industrialization
Subsidy for capacity expansion in Shenzhen 2,070,000.00 Other gains 2,070,000.00
Discount subsidy 3,853,900.00 Financial expenses 3,853,900.00
Others 451,425.64 Other gains 451,425.64
Total 26,233,508.20 17,173,889.17
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(2) Government subsidy refund
□ Applicable √ Inapplicable
Note: The value-added tax is immediately refundable income, which is mainly attributed to the fact that Sun Corporation
Kechuangyuan Software belongs to a software company and enjoys the VAT rebate policy. Since the project will not form
long-term assets, the Company will use it as a government subsidy related to income.
68. Leasing
(1) The Company as leasee
Item 2021
Short term lease expenses with simplified treatment included in current profit and loss 32,344,895.47
Lease expenses of low value assets with simplified treatment included in current 190,056.19
profit and loss (except short-term lease)
Interest expense on lease liabilities 931,218.41
Total cash outflow related to leasing 37,426,107.95
(2) The Company is the leasor
Operating lease: A. lease income
Item 2021
Rental income 126,420,568.95
Including: income related to variable lease payments not included in the measurement of 283,825.76
lease receipts
B. Undiscounted lease receipts to be received in each of the five consecutive fiscal years after the balance sheet date, and the
total undiscounted lease receipts to be received in the remaining years
Year Amount (in RMB)
2022 147,885,877.18
2023 128,082,364.87
2024 86,739,590.85
2025 74,098,974.63
2026 57,564,299.41
Total undiscounted lease receipts to be received after 2026 155,880,077.52
Including Within 1 year (inclusive) 33,017,947.39
1-2 years 30,461,785.74
2-3 years 18,211,425.07
Over 3 years 74,188,919.32
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VIII. Change to Consolidation Scope
1. Consolidation of entities under common control
(1) Merger of companies under the common control during the report period
In RMB
Net profit of
Income of the
Basis for the Net profit of
consolidated Income of the
Proportion of judgment of consolidated the
Determinatio party from consolidated
equity merger of party from consolidated
Consolidated Consolidatio n basis of the beginning party during
obtained in companies the beginning party during
party n date consolidation of the current the
business under the of the current the
date period to the consolidation
consolidation common period to the consolidation
consolidation period
control consolidation period
date
date
The ultimate
controlling Complete
party before industrial and
Yunzhu Thursday, 20,895,363.4
100.00% and after the commercial 3,390,588.25 18,912.61 7,705,820.11
Industrial April 8, 2021 7
merger is Mr. change
Xiong registration
Jianming
Other notes: Yunzhu Industrial includes Yunzhu Industrial and its subsidiary Fangda Yunzhu Testing. Yunzhu Industrial holds 100%
equity of its subsidiary Fangda Yunzhu Testing.
(2) Consolidation costs
In RMB
Combination costs Yunzhu Industrial
--Cash 125,388,100.00
Other notes: through deliberation and approval at the 6th meeting of the 9th board of directors held on March 19, 2021, the company
Fangda Jianke and Fangda Hongjun Investment acquired 100% equity of Yunzhu Industrial held by related parties Shenzhen
Yingxiang Investment Co., Ltd. (hereinafter referred to as "Yingxiang Investment") and Shenzhen Mingjiu Investment Co., Ltd.
(hereinafter referred to as "Mingjiu Investment") in cash. The purchase price shall be determined by both parties through negotiation
according to the appraisal value of RMB125,388,100 in the asset appraisal report of Shenzhen Fangda Jianke Group Co., Ltd. on the
equity project of Shenzhen Yunzhu Industrial Co., Ltd. (Zhonglian pingbao Zi [2021] No. 530) issued by Zhonglian Asset Appraisal
Group Co., Ltd.
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(3) Book value of assets and liabilities of the consolidated party on the consolidation date
In RMB
Yunzhu Industrial
Consolidation date End of last period
Monetary capital 2,128,872.26 4,134,142.35
Receivables 7,258,493.18 9,847,052.11
Inventory 1,276,334.40
Fixed assets 52,890.36 55,650.37
Intangible assets 7,934.87 8,785.04
Transactional financial assets 3,155,680.40 10,331,880.99
Prepayment 333,438.89 94,101.21
Other current assets 714,404.24 172,032.59
Deferred income tax assets 158,781.77 40,487.55
Other non-current assets 86,928.59 82,008.43
Borrowing 37,186.48
Payable 1,964,566.26 11,605,964.57
Deferred income tax liabilities 7,082.46
Net assets 13,172,006.22 13,153,093.61
Less: minor shareholders’ equity 1,317,200.62 1,315,309.36
Acquired net assets 11,854,805.60 11,837,784.25
Contingent liabilities of the consolidated party assumed in the business consolidation: None.
2. Change to the consolidation scope for other reasons
Change in the consolidation scope due to other reasons (such as new subsidiaries and liquidation of subsidiaries) and the situations:
In the change of consolidation scope in this period, four new subsidiaries were added in the way of establishment: Fangda Zhichuang
Technology Singapore, Fangda Zhichuang Technology Wuhan, Fangda Zhichuang Technology Nanchang and Fangda Zhichuang
Technology Dongguan.
IX. Equity in Other Entities
1. Interests in subsidiaries
(1) Group Composition
Company Place of Registered Business Shareholding Obtaining
business address percentage method
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Direct Indirect
Fangda Jianke Shenzhen Shenzhen Designing, manufacturing, 98.39% 1.61% Incorporation
and installation of curtain
walls
Fangda Shenzhen Shenzhen Production, processing and 83.10% Incorporation
Zhichuang installation of subway screen
Technology doors
Fangda Jiangxi Nanchang Nanchang Productionand sales of 75.00% 25.00% Incorporation
New Material new-type materials composite
materials and production of
curtain walls
Fangda Property Shenzhen Shenzhen Real estate development and 99.00% 1.00% Incorporation
operation
Fangda New Shenzhen Shenzhen Design and construction of 99.00% 1.00% Incorporation
Energy PV power plants
Fangda Chengdu Chengdu Chengdu Trusted processing of 100.00% Incorporation
Technology building curtain wall
materials
Shihui Virgin Virgin Investment 100.00% Incorporation
International Islands Islands
Fangda Dongguan Dongguan Dongguan Installation and sales of 100.00% Incorporation
New Material building curtain walls
Fangda Property Shenzhen Shenzhen Property management 100.00% Incorporation
Management
Fangda Jiangxi Nanchang Nanchang Real estate development and 100.00% Incorporation
Property operation
Development
Fangda Luxin Pingxiang Pingxiang Design and construction of 100.00% Incorporation
New Energy PV power plants
Fangda Xinjian Nanchang Nanchang Design and construction of 100.00% Incorporation
New Energy PV power plants
Fangda Dongguan Dongguan Dongguan Design and construction of 100.00% Incorporation
New Energy PV power plants
Kechuangyuan Shenzhen Shenzhen Software development 83.10% Incorporation
Software
Fangda Hong Kong Hong Kong Metro screen door 83.10% Incorporation
Zhichuang
Technology Hong
Kong
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Fangda Hongjun Shenzhen Shenzhen Investment 98.00% 2.00% Incorporation
Investment
Fangda Australia Australia Australia Designing, manufacturing, 100.00% Incorporation
and installation of curtain
walls
Fangda Cloud Shenzhen Shenzhen Design, development and 100.00% Incorporation
Rail sales of cloud rail transport
equipment
Chengda Curtain Chengdu Chengdu Building decoration and other 100.00% Incorporation
Wall Company construction industry
Fangda Southeast Vietnam Vietnam Designing, manufacturing, 100.00% Incorporation
Asia and installation of curtain
walls
Fangda Shanghai Shanghai Shanghai Intelligent technology, new 30.00% 70.00% Incorporation
Zhijian energy, automated technology
Fangda Shanghai Shanghai Shanghai Construction technology, 100.00% Incorporation
Jianzhi intelligent technology,
automation technology,
design, production and
installation of building curtain
walls
Zhongrong Litai Shenzhen Shenzhen Business service 55.00% Purchase
Fangda Shenzhen Shenzhen Project investment and 99.00% 0.52% Incorporation
Investment investment consultancy
Fangda Lifu Shenzhen Shenzhen Project investment and 52.00% Incorporation
Investment investment consultancy
Fangda Xunfu Shenzhen Shenzhen Project investment and 100.00% Incorporation
Investment investment consultancy
Fangda Jianke Hong Kong Hong Kong Design, sale and installation 100.00% Incorporation
Hong Kong of building curtain wall
Yunzhu Industrial Shenzhen Shenzhen Inspection, technical service 100.00% Consolidation
and consultation of building of entities
safety and building energy under common
saving system control
Fangda Yunzhu Shenzhen Shenzhen Inspection, technical service 100.00% Consolidation
Testing and consultation of building of entities
safety and building energy under common
saving system control
Fangda Singapore Singapore Production, processing and 83.10% Incorporation
Zhichuang installation of subway screen
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Annual Report 2021 of China Fangda Group Co., Ltd.
Technology doors
Singapore
Fangda Wuhan Wuhan Production, processing and 83.10% Incorporation
Zhichuang installation of subway screen
Technology doors
Wuhan
Fangda Nanchang Nanchang Production, processing and 83.10% Incorporation
Zhichuang installation of subway screen
Technology doors
Nanchang
Fangda Dongguan Dongguan Production, processing and 83.10% Incorporation
Zhichuang installation of subway screen
Technology doors
Dongguan
Others:
① Fangda Zhichuang Technology Singapore has subscribed a registered capital of SGD10,000. As of December 31, 2021, the total
paid in registered capital is SGD10000.
② Fangda Zhichuang Technology Wuhan was established on February 8, 2021. Fangda Zhichuang Technology has subscribed a
registered capital of RMB10 million. As of December 31, 2021, the paid in registered capital is RMB0.00 in total.
③ Founded on November 10, 2021, Fangda Zhichuang Technology Nanchang has subscribed a registered capital of RMB1 million.
As of December 31, 2021, the paid in registered capital is RMB0.00 in total.
Fangda Zhichuang Technology Dongguan was established on July 9, 2021. Fangda Zhichuang Technology has subscribed a
registered capital of RMB50 million. As of December 31, 2021, the total paid in registered capital is RMB0.00.
(2) Major non wholly-owned subsidiaries
In RMB
Dividend to be Interest balance of
Shareholding of minority Profit and loss attributed
Company distributed to minority minority shareholders in
shareholders to minority shareholders
shareholders the end of the period
Zhongrong Litai 45.00% 6,809.98 48,409,765.57
Fangda Zhichuang
5.96% 4,464,178.97 17,533,613.20
Technology
Other notes: The Company's subsidiaries Fangda Construction Technology Co., Ltd. and Jiangxi Fangda New Material Co., Ltd.
transfer 10.9375% of the equity of Fangda Zhichuang Technology Co., Ltd. because the Company cannot unconditionally avoid
performing its contractual obligations by delivering cash or other financial assets, the Company recognizes the contractual
obligations as financial liabilities, and accordingly does not recognize minority shareholders' equity. See Chapter X, 9. Equity in
other subjects. 2 It is described in the transaction in which the owner's equity shares of the subsidiary changes and still controls the
subsidiary.
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(3) Financial highlights of major non wholly owned subsidiaries
In RMB
Closing balance Opening balance
Compan Non-curr Non-curr Non-curr Non-curr
Current Total of Current Total Current Total of Current Total
y ent ent ent ent
asset assets liabilities liabilities asset assets liabilities liabilities
assets liabilities assets liabilities
Zhongro 207,592, 455,315. 208,047, 100,106, 363,929. 100,470, 205,837, 30,024.8 205,867, 98,305,2 98,305,2
ng Litai 402.32 59 717.91 531.59 52 461.11 361.25 8 386.13 62.61 62.61
Fangda
Zhichuan
725,006, 84,470,4 809,476, 485,329, 23,847,5 509,177, 757,453, 62,283,6 819,737, 519,869, 6,562,28 526,432,
g
361.40 04.66 766.06 720.83 19.22 240.05 607.34 69.54 276.88 993.38 6.06 279.44
Technolo
gy
In RMB
Amount occurred in the current period Occurred in previous period
Business Business
Company Total of misc. Total of misc.
Turnover Net profit operation Turnover Net profit operation
incomes incomes
cash flows cash flows
Zhongrong
284,747.73 15,133.28 15,133.28 87,201.58 601,651.38 -15,675.58 -15,675.58 166,931.72
Litai
Fangda
534,310,567. 78,123,193.6 77,400,836.6 28,889,669.1 651,249,442. 75,181,980.2 75,543,172.3 70,773,262.6
Zhichuang
88 6 3 0 29 7 3 7
Technology
2. Change in the ownership share of the subsidiary and control of the transaction of the subsidiary
(1) Description of changes in owner's equity shares of subsidiaries
In May 2021, the subsidiaries Fangda Jianke, Fangda Jiangxi New Material and CITIC Securities Investment Co., Ltd., Shenzhen Hi
Tech Investment Venture Capital Co., Ltd., Shenzhen Qianhai Pengchen Investment Partnership (limited partnership),
Gongqingcheng Longrun Spring Investment Partnership (limited partnership), Shenzhen Jiayuan Capital Management Co., Ltd and
Gongqingcheng Huasheng Botai Investment Partnership (limited partnership) (hereinafter referred to as the "Transferee") signed
equity transfer agreements to transfer 10.9375% of the total equity of Fangda Zhichuang Technology, with the transfer amount of
RMB 175 million. The agreement also stipulates that if Fangda Zhichuang Technology fails to start and complete the qualified listing
before May 31, 2025, the transferee has the right to require Fangda Jianke and Fangda Jiangxi New Material to repurchase or transfer
all or part of the equity of Fangda Zhichuang Technology held by the transferee. Since the Company cannot unconditionally
avoid performing the above contractual obligations by delivering cash or other financial assets, the Company
recognizes the contractual obligations as financial liabilities.
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3. Interests in joint ventures or associates
(1) Financial summary of insignificant joint ventures and associates
In RMB
Closing balance/amount occurred in this Opening balance/amount occurred in
period previous period
Associate: -- --
Total book value of investment 55,218,946.14 55,902,377.95
Total shareholding -- --
Net profit -683,431.81 -1,319,862.88
--Total of misc. incomes -683,431.81 -1,319,862.88
X. Risks of Financial Tools
The risks associated with the financial instruments of the Company arise from the various financial assets
and liabilities recognized by the Company in the course of its operations, including credit risks, liquidity
risks and market risks.
The management objectives and policies of various risks related to financial instruments are governed by
the management of the Company. The operating management is responsible for daily risk management through
functional departments (for example, the Company's credit management department reviews the Company's credit
sales on a case-by-case basis). The internal audit department of the Company conducts daily supervision of the
implementation of the Company's risk management policies and procedures, and reports relevant findings to the
Company's audit committee in a timely manner.
The overall goal of the Company's risk management is to formulate risk management policies that minimize
the risks associated with various financial instruments without excessively affecting the Company's
competitiveness and resilience.
1. Credit risk
Credit risk is caused by the failure of one party of a financial instrument in performing its obligations,
causing the risk of financial loss for the other party. The credit risk of the Company mainly comes from monetary
capital, notes receivable, accounts receivable, other receivables, receivables financing, contract assets, etc.
The credit risk of these financial assets comes from the default of the counterparties, and the maximum risk
exposure is equal to the book amount of these instruments.
The Company's money and funds are mainly deposited in the commercial banks and other financial institutions.
The Company believes that these commercial banks have higher reputation and asset status and have lower credit
risk.
For notes receivable, accounts receivable, other receivables, receivables financing and contract assets,
the Company sets relevant policies to control credit risk exposure. The Group set the credit line and term for
debtors according to their financial status, external rating, and possibility of getting third-party guarantee,
credit record and other factors. The Group regularly monitors debtors’ credit record. For those with poor credit
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record, the Group will send written payment reminders, shorten or cancel credit term to lower the general credit
risk.
(1) Significant increases in credit risk
The credit risk of the financial instrument has not increased significantly since the initial confirmation.
In determining whether the credit risk has increased significantly since the initial recognition, the Company
considers reasonable and evidenced information, including forward-looking information, that can be obtained
without unnecessary additional costs or effort. The Company determines the relative risk of default risk of the
financial instrument by comparing the risk of default of the financial instrument on the balance sheet date with
the risk of default on the initial recognition date to assess the credit risk of the financial instrument from
initial recognition.
When one or more of the following quantitative and qualitative criteria are triggered, the Company believes
that the credit risk of financial instruments has increased significantly: the quantitative criteria are mainly
the probability of default in the remaining life of the reporting date increased by more than a certain proportion
compared with the initial recognition; the qualitative criteria are the major adverse changes in the operation
or financial situation of the major debtors, the early warning of customer list, etc.
(2) Definition of assets where credit impairment has occurred
In order to determine whether or not credit impairment occurs, the standard adopted by our company is
consistent with the credit risk management target for related financial instruments, and quantitative and
qualitative indicators are considered.
Major financial difficulties have occurred to the issuer or the debtor; Breach of contract by the debtor,
such as payment of interest or default or overdue of principal; (B) The concession that the debtor would not
make under any other circumstances for economic or contractual considerations relating to the financial
difficulties of the debtor; The debtor is likely to be bankrupt or undertake other financial restructuring; The
financial difficulties of the issuer or debtor lead to the disappearance of the active market for the financial
asset; To purchase or generate a financial asset at a substantial discount, which reflects the fact that a credit
loss has occurred.
Credit impairment in financial assets may be caused by a combination of multiple events, not necessarily
by events that can be identified separately.
(3) Expected credit loss measurement
Depending on whether there is a significant increase in credit risk and whether a credit impairment has occurred, the
Company prepares different assets for a 12-month or full expected credit loss. The key parameters of expected credit loss
measurement include default probability, default loss rate and default risk exposure. Taking into account the
quantitative analysis and forward-looking information of historical statistics (such as counterparty ratings, guaranty methods,
collateral categories, repayment methods, etc.), the Company establishes the default probability, default loss rate and default risk
exposure model.
Definition:
The probability of default refers to the possibility that the debtor will not be able to fulfil its obligation to pay in the next 12
months or throughout the remaining period.
Breach Loss Rate means the extent of loss expected by the Company for breach risk exposure. Depending on
the type of counterparty, the manner and priority of recourse, and the different collateral, the default loss
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Annual Report 2021 of China Fangda Group Co., Ltd.
rate is also different. The default loss rate is the percentage of the risk exposure loss at the time of the default, calculated on the
basis of the next 12 months or the entire lifetime.
Exposure to default is the amount payable to the Company at the time of default in the next 12 months or throughout the
remaining life. Prospective information credit risks significantly increased and expected credit losses were
calculated. Through the analysis of historical data, the Company has identified the key economic indexes that
affect the credit risk of each business type and the expected credit loss.
The largest credit risk facing the Group is the book value of each financial asset on the balance sheet.
The Group makes no guarantee that may cause the Group credit risks.
Among the Group’s receivables, accounts receivable from top 5 customers account for 25.47% of the total accounts
receivable (beginning of the period: 28.33%); among other receivables, other receivables from top 5 customers account for 69.41%
of the total other receivables (beginning of the period: 69.60%).
2. Liquidity risk
Liquidity risk is the risk of capital shortage when the Group needs to pay cash or settled with other financial
assets. The Company is responsible for the cash management of its subsidiaries, including short-term investments
in cash surpluses and loans to meet projected cash requirements. The Company's policy is to regularly monitor
short and long-term liquidity requirements and compliance with borrowing agreements to ensure adequate cash
reserves and readily available securities.
As of December 31, 2021, the maturity of the Company's financial liabilities is as follows:
Amount: in RMB10,000
December 31, 2021
Item
Less than 1 year Within 1-3 Over 3 years Total
years
Short-term loans 128,747.44 128,747.44
Derivative financial 1.19 1.19
liabilities
Notes payable 84,944.53 84,944.53
Account payable 132,966.88 870.87 474.60 134,312.35
Employees' wage payable 6,907.10
6,907.10
Other payables 6,998.63 1,707.20 3,984.48 12,690.31
Non-current liabilities 7,841.86 7,841.86
due in 1 year
Other current liabilities 4,809.84
4,809.84
Long-term loans - 24,650.00 108,700.00 133,350.00
Lease liabilities - 1,886.82 28.39 1,915.21
Long-term payable 18,364.02 18,364.02
Total liabilities 373,217.47 29,114.89 131,551.49 533,883.85
(Continued)
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Annual Report 2021 of China Fangda Group Co., Ltd.
December 31, 2020
Item Less than 1 year Within 1-3 Over 3 years Total
years
Short-term loans 104,825.03 104,825.03
Derivative financial 91.52 91.52
liabilities
Notes payable 86,622.45 86,622.45
Account payable 124,892.82 3,271.34 104.08 128,268.24
Employees' wage payable 6,089.42 6,089.42
Other payables 9,741.88 3,965.54 1,656.09 15,363.51
Non-current liabilities 10,335.98 10,335.98
due in 1 year
Other current liabilities 10,768.84 10,768.84
Long-term loans 24,941.15 85,000.00 109,941.15
Total liabilities 353,367.94 32,178.03 86,760.17 472,306.14
3. Market risk
(1) Credit risks
The exchange rate risk of the Company mainly comes from the assets and liabilities of the Company and its
subsidiaries in foreign currency not denominated in its functional currency. Except for the use of Hong Kong
dollars, United States dollars, Australian dollars, Vietnamese dong, euro, Indian rupees or Singapore currencies
by its subsidiaries established in and outside the Hong Kong Special Administrative Region, other major businesses
of the Company shall be denominated in Renminbi.
As of December 31, 2021, the Company's foreign currency financial assets and liabilities at the end of the period are listed in
Chapter X, VII, item note 66 of consolidated financial statements and description of foreign currency monetary items.
The Company pays close attention to the impact of exchange rate changes on the Company's exchange rate
risk. The Company continuously monitors the scale of foreign currency transactions and foreign currency assets
and liabilities to minimize foreign exchange risks. To this end, the Company may avoid foreign exchange risks
by signing forward foreign exchange contracts or currency swap contracts.
(2) Interest risk
The Group's interest rate risk mainly arises from long-term interest-bearing debts such as long-term bank
loans. Financial liabilities with floating interest rate cause cash flow interest rate risk for the Group.
Financial liabilities with fixed interest rate cause fair value interest rate risk for the Group. The Group decides
the proportion between fixed interest rate and floating interest rate according to the market environment and
regularly reviews and monitors the combination of fixed and floating interest rate instruments.
The Group Finance Department of the Company continuously monitors the Group interest rate level. The rising
interest rate will increase the cost of the new interest-bearing debt and the interest expenditure on
interest-bearing debt which has not yet been paid by the Company at the floating rate, and will have a significant
adverse effect on the Company's financial performance. Management will make adjustments in time according to
the latest market conditions.
As of December 31, 2021, when other risk variables remain unchanged, if the loan interest rate calculated by floating interest
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Annual Report 2021 of China Fangda Group Co., Ltd.
rate increases or decreases by 50 basis points, the net profit of the Company in that year will decrease or increase by RMB6.8294
million (December 31, 2020: RMB7.3875 million).
XI. Fair Value
1. Closing fair value of assets and liabilities measured at fair value
In RMB
Item Closing fair value
First level fair value Second level fair Third level fair Total
value value
1. Continuous fair value -- -- -- --
measurement
(I) Transactional financial assets 1,069,587.62 25,135,241.89 26,204,829.51
1. Financial assets measured at fair 1,069,587.62 25,135,241.89 26,204,829.51
value with variations accounted into
current income account
(1) Investment of financial products 25,135,241.89 25,135,241.89
(2) Derivative financial assets 1,069,587.62 1,069,587.62
(2) Receivable financing 4,263,500.00 4,263,500.00
(3) Investment in other equity tools 14,180,652.65 14,180,652.65
(4) Investment real estate 5,755,216,580.10 5,755,216,580.10
1. Leased building 5,755,216,580.10 5,755,216,580.10
(5) Other non-current financial assets 7,525,408.24 7,525,408.24
Total assets measured at fair value 1,069,587.62 5,755,216,580.10 51,104,802.78 5,807,390,970.50
continuously
(6) Transactional financial liabilities 11,871.20 11,871.20
1. Derivative financial liabilities 11,871.20 11,871.20
Total assets measured at fair value 11,871.20 11,871.20
continuously
2. Discontinuous fair value -- -- -- --
measurement
2. Recognition basis of market value of continuous and discontinuous items measured at first level fair
value
The Group determines the fair value using quotation in an active market for financial instruments traded in an
active market;
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3. Valuation technique and qualitative and quantitative information for key parameters of continuous and
discontinuous second level fair value items
For investment real estate, the Company adopts valuation technology to determine its fair value. The valuation
techniques adopted are mainly the market comparison method and the income method, and the rent and resale model.
The input value of valuation technology mainly includes comparable market unit price, market rent, vacancy rate,
growth rate, rate of return, etc.
4. Valuation technique and qualitative and quantitative information for key parameters of continuous and
discontinuous third level fair value items
If there is no active market, the Company uses evaluation techniques to determine the fair value. The valuation
models are mainly cash flow discount model and market comparable company model. The input value of valuation
technology mainly includes risk-free interest rate, benchmark interest rate, exchange rate, credit point
difference, liquidity premium, lack of liquidity discount, etc.
5. Switch between different levels, switch reason and switching time policy
The Company takes the occurrence date of the events leading to the transition between levels as the time point
to confirm the transition between levels. In the period, there is no switch in the financial assets measured
at fair value between the first and second level or transfer in or out of the third level.
6. Fair value of financial assets and liabilities not measured at fair value
Financial assets and liabilities measured at amortized cost include: monetary capital, bills receivable, accounts
receivable, other receivables, short-term borrowings, notes payable, employee compensation payable, accounts
payables, other payables, and long-term payables.
XII. Related Parties and Transactions
1. Parent of the Company
Parent Registered Business Registered capital Share of the Voting power of
address parent co. in the the parent
Company company
Shenzhen Banglin Shenzhen Industrial RMB30 million 11.11% 10.87%
Technologies Development investment
Co., Ltd.
Shengjiu Investment Ltd. Hong Kong Industrial HKD1 million 9.89% 9.89%
investment
Particulars about the parent of the Company
①All of the investors of Shenzhen Banglin Technology Development Co., Ltd., the holding shareholder of the Company, are natural
persons. Among them, Chairman Xiong Jianming is holding 85％ shares, and Mr. Xiong Xi – son of Mr. Xiong Jianming, is holding
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15% of the shares.
② Among the top 10 shareholders, Shenzhen Banglin Technology Development Co., Ltd. and Shengjiu Investment Co., Ltd. are
acting in concert.
The final controller of the Company is Xiong Jianming.
2. Subsidiaries of the Company
For details of subsidiaries of the enterprise, please refer to Note IX, rights and interests in other entities.
3. Joint ventures and associates
See Note for details of significant joint ventures and associates of the Company.
Information about other joint ventures or associates with related transactions in this period or with balance generated by related
transactions in previous period:
Joint venture or associate Relationship with the Company
Ganshang Joint Investment Affiliates of the Company
4. Other associates
Other related parties Relationship with the Company
Jiangxi Business Innovative Property Joint Stock Co., Ltd. Affiliates of the Company
Gong Qing Cheng Shi Li He Investment Management Affiliated relationship with Shenzhen Banglin Technology
Partnership Enterprise (limited partner) Development Co., Ltd.
Shenyang Fangda Subsidiary in liquidation
Shenzhen Yikang Real Estate Co. Ltd. Controlled subsidiaries
Sub-subsidiary under liquidation has completed the tax
Shenzhen Woke
cancellation procedures in November 2021
Shenzhen Qijian Technology Co., Ltd. (Qijian Technology) Common actual controller
Shenzhen Mingjiu Investment Co., Ltd Common actual controller
Shenzhen Yingxiang Investment Co., Ltd Company with significant influence of actual controllers
Director, manager and secretary of the Board Key management
5. Related transactions
(1) Related transactions for purchase and sale of goods, provision and acceptance of services
Sales of goods and services
In RMB
Amount occurred in the
Affiliated party Related transaction Occurred in previous period
current period
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Property service and sales of
Qijian Technology 119,618.74 51,161.39
goods
(2) Related leasing
The Company is the leasor:
In RMB
Name of the leasee Category of asset for lease Rental recognized in the period Rental recognized in the period
Qijian Technology Houses & buildings 962,580.65 384,319.68
(3) Related guarantees
The Company is the guarantor:
In RMB
Beneficiary party Amount guaranteed Start date Due date Completed or not
Wednesday, July 31, Thursday, August 19,
Fangda Shanghai Zhijian 80,000,000.00 Yes
2019 2021
Jiangxi Property Thursday, September 16,
200,000,000.00 19 June 2019 Yes
Development 2021
Fangda Jianke 500,000,000.00 Tuesday, July 14, 2020 Thursday, July 8, 2021 Yes
Tuesday, September 22, Tuesday, September 21,
Fangda Jianke 250,000,000.00 Yes
2020 2021
Fangda Jianke 150,000,000.00 Friday, April 10, 2020 Friday, March 18, 2022 No
Wednesday, April 14,
Fangda Jianke 300,000,000.00 Friday, June 12, 2020 Yes
2021
Fangda Zhichuang
100,000,000.00 Friday, April 10, 2020 Friday, March 18, 2022 No
Technology
Fangda Zhichuang
30,000,000.00 29 June 2020 23 June 2020 Yes
Technology
Monday, February 24,
Fangda Jianke 600,000,000.00 13 February 2021 Yes
2020
Thursday, August 19,
Fangda Jianke 400,000,000.00 30 September 2020 Yes
2021
Fangda Zhichuang Wednesday, June 30,
400,000,000.00 Tuesday, July 28, 2020 Yes
Technology 2021
Fangda Zhichuang Thursday, August 19,
100,000,000.00 30 September 2020 Yes
Technology 2021
Fangda Zhichuang
200,000,000.00 16 June 2020 13 February 2021 Yes
Technology
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Fangda Jiangxi New
65,000,000.00 Tuesday, July 14, 2020 Tuesday, July 13, 2021 Yes
Material
Fangda Jiangxi New
80,000,000.00 23 May 2020 22 May 2021 Yes
Material
Sunday, February 24,
Fangda Property 1,350,000,000.00 25 February 2020 No
2030
Kechuangyuan Software 10,000,000.00 Sunday, August 23, 2020 13 February 2021 Yes
For details, please refer
Fangda Jianke and
Wednesday, December to the following
Fangda Zhichuang 140,000,000.00 No
18, 2019 description of related
Technology
party guarantee (2)
Fangda Jianke 200,000,000.00 Friday, March 6, 2020 Friday, March 5, 2021 Yes
Fangda Jianke 500,000,000.00 Tuesday, July 27, 2021 Sunday, June 11, 2023 No
Wednesday, March 17, Thursday, February 17,
Fangda Jianke 300,000,000.00 No
2021 2022
Fangda Jianke 300,000,000.00 Friday, January 29, 2021 Friday, January 28, 2022 No
Saturday, September 18, Monday, September 5,
Fangda Jianke 400,000,000.00 No
2021 2022
Wednesday, August 18, Wednesday, August 17,
Fangda Jianke 300,000,000.00 No
2021 2022
Wednesday, November Wednesday, November
Fangda Jianke 250,000,000.00 No
17, 2021 16, 2022
Friday, December 17, Friday, December 16,
Fangda Jianke 480,000,000.00 No
2021 2022
Fangda Zhichuang
400,000,000.00 Wednesday, July 7, 2021 Wednesday, July 6, 2022 No
Technology
Fangda Zhichuang Wednesday, March 31, Thursday, February 17,
150,000,000.00 No
Technology 2021 2022
Fangda Zhichuang
200,000,000.00 Friday, January 29, 2021 Friday, January 28, 2022 No
Technology
Fangda Zhichuang Tuesday, September 28, Friday, September 2,
150,000,000.00 No
Technology 2021 2022
Fangda Zhichuang Thursday, August 12,
50,000,000.00 Sunday, August 7, 2022 No
Technology 2021
Thursday, September 30, Friday, September 30,
Kechuangyuan Software 10,000,000.00 No
2021 2022
Fangda Jiangxi New
65,000,000.00 Friday, July 30, 2021 Friday, July 29, 2022 No
Material
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Fangda Jiangxi New Wednesday, May 26,
100,000,000.00 Tuesday, April 12, 2022 No
Material 2021
Thursday, March 18,
Fangda Property 470,000,000.00 Tuesday, March 18, 2031 No
2021
Saturday, March 18,
Fangda Shanghai Zhijian 35,000,000.00 Thursday, June 3, 2021 No
2023
The Company is the guarantied party:
In RMB
Guarantor Amount guaranteed Start date Due date Completed or not
Wednesday, November Friday, December 10,
Fangda Jianke 100,000.00 Yes
10, 2021 2021
Note to related guarantees
1. The above-mentioned guarantees are all associated guarantees within interested entities of the Company.
2. HSBC has a total credit of RMB 90 million to the Company, Fangda Jianke and Fangda Zhichuang Technology and has not yet
agreed on the credit expiration date. HSBC regularly evaluates the credit status. The restriction on the use of the credit is
as follows:
The Company can use non-financial bank guarantees of up to 90 million yuan to grant credit;
Fangda Jianke has non-committed combined revolving credits of not more than RMB90 million including revolving loans of up
to RMB90 million, non-financial bank guarantees of up to RMB90 million and bank acceptances of up to RMB90 million.
Fangda Zhichuang Technology has non-committed combined revolving credits of not more than RMB140 million including
revolving loans of up to RMB50 million, non-financial bank guarantees of up to RMB140 million and bank acceptances of up to
RMB140 million.
(4) Remuneration of key management
In RMB
Item Amount occurred in the current period Occurred in previous period
Directors, supervisors and senior
9,463,963.93 8,961,747.37
management
(5) Other related transactions
The Company's subsidiaries Fangda Jianke and Fangda Hongjun Investment acquired 100% equity of Yunzhu Industrial held by
Shenzhen Mingjiu Investment Co., Ltd. and Shenzhen Yingxiang Investment Co., Ltd. in cash. The total transaction amount is RMB
RMB125.3881 million. After the completion of the transaction, Fangda Jianke and Fangda Hongjun Investment hold 99% and 1%
shares of Yunzhu Industrial respectively.
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6. Receivable and payables due with related parties
(1) Receivable interest
In RMB
Closing balance Opening balance
Item Affiliated party Remaining book Remaining book
Bad debt provision Bad debt provision
value value
Account receivable Qijian Technology 4,194.54 41.95 44,268.81 442.69
Other receivables Shenyang Fangda 42,877.00 42,877.00 42,877.00 42,877.00
Other receivables Shenzhen Woke 867,442.94 867,442.94
Ganshang Joint
Other receivables 3,791,089.25 56,487.23 3,791,089.25 56,487.23
Investment
Shenzhen Yikang
Other receivables 70,062,675.83 1,043,933.87 70,000,000.00 1,043,000.00
Real Estate Co. Ltd.
(2) Receivable interest
In RMB
Item Affiliated party Closing balance of book value Opening balance of book value
Shenzhen Yikang Real Estate
Other payables 25,116,052.92 24,912,830.32
Co. Ltd.
Other payables Qijian Technology 400.00 400.00
Other payables Ganshang Joint Investment 3,355.36 3,355.36
XIII. Contingent events
1. Major commitments
Major commitments that exist on the balance sheet day
On November 6, 2017, Fangda Real Estate Co., Ltd., a subsidiary of the Company, and Bangshen Electronics (Shenzhen) Co.,
Ltd. signed the ―Joint Development Agreement on Fangda Bangshen Industrial Park (Temporary Name) Urban Renewal Project‖,
and the two parties agreed to develop cooperatively. In order to develop urban renewing projects such as a ―renovation project‖,
Fangda Real Estate provided Party A with property compensation through renovating and renovating the property allocation terms
agreed upon by both parties, and obtained independent development rights of the project. As of December 31, 2021, Fangda Real
Estate has paid a deposit of RMB20 million.
(2) In July 2018, the Company's subsidiary Fangda Real Estate Co. Ltd. (Party A) signed a contract with Shenzhen Yikang
Real Estate Co. Ltd. (Party B1) and Shenzhen Qianhai Zhongzheng Dingfeng No. 6 Investment Enterprise (Limited Partnership)
(Party B2), "Shenzhen Henggang Dakang Village Project Cooperation Agreement". Party B agrees to transfer the entire equity of the
project company it holds and the entire development interest of the project to Party A. Party A shall pay Party B a total of RMB600
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Annual Report 2021 of China Fangda Group Co., Ltd.
million for the cooperation price. As of December 31, 2021, Fangda Real Estate has paid Party B and the project company RMB50
million of deposit, RMB20 million of service fee and RMB61.9372 million of equity transfer.
(3) In May 2021, the subsidiaries Fangda Jianke and Fangda Jiangxi New Material transferred 10.9375% of the total equity of
Fangda Zhichuang Technology, with a transfer amount of RMB 175 million. The agreement also stipulates that if Fangda Zhichuang
Technology fails to start and complete the qualified listing before May 31, 2025, the transferee has the right to require Fangda Jianke
and Fangda Jiangxi New Material to repurchase or transfer all or part of the equity of Fangda Zhichuang Technology held by the
transferee. See Chapter X, IX. rights and interests in other subjects. 2 It is explained in the transactions in which the owner's equity
shares of the subsidiary changes and still controls the subsidiary.
As of December 31, 2021, the Company did not have other commitments that should be disclosed.
2. Contingencies
(1) Significant contingencies on the balance sheet date
(1) Contingent liabilities formed by material lawsuit or arbitration, and their influences on the financial position
① On June 19, 2019, Langfang Aomei Jiye Real Estate Development Co., Ltd. filed a lawsuit against Fangda Jianke in the
People's Court of Langfang Development Zone, demanding compensation of RMB19,721,315.00, and filed an application for
appraisal of quality, repair cost and uncompleted project cost on December 26, 2019; Fangda Jianke filed a counterclaim on
September 11, 2019, demanding payment of RMB13,920,000.70, and put forward the application for completed project cost
appraisal on November 22, 2019. As of the date of this report, the case is still in the identification process.
② In September 2021, Fangda Jianke sued Qianhai Junlin Industrial Development (Shenzhen) Co., Ltd. and Evergrande Real
Estate Group (Shenzhen) Co., Ltd. for paying RMB7096421.00 yuan of project payment and overdue interest, and claimed the
priority of project payment. Shenzhen Nanshan District People's court accepted the case on December 3, 2021. The case number is
(2021) Yue 0305 Min Chu No. 23883. As of the date of this report, no notice of the hearing of the case has been
received.
③ For the Fangda Town project developed by Fangda Real Estate, some owners of Fangda Town failed to handle the real
estate ownership certificate on schedule due to the expiration of the Detailed Rules for the Implementation of the Administrative
Measures of Shenzhen Municipality on the Transfer of Industrial Buildings (for Trial Implementation) implemented by Shenzhen
Municipal People's Government and the Notice of the Municipal Planning and Land Resources Commission on Matters Related to
the Transfer Management of Industrial Buildings, some buyers sued Fangda Real Estate to pay liquidated damages for overdue
certificate processing. Due to the above litigation and the property preservation proposed by the owner, as of December 31, 2021, the
monetary capital of Fangda Real Estate was frozen, with an amount of RMB7,154,713.67. At the same time, Fangda Real Estate
accrued an estimated liability of RMB2,091,286.00 according to the most likely litigation results.
(2) Pending major lawsuits
On September 6, 2017, Chenghua District People's Court of Chengdu Municipality sentenced Sichuan Chuta Hengyuan
Industrial Co., Ltd. to pay construction money to Fangda Jianke within 10 days from the date of the verdict 川0108民初1828号
RMB10,242,182.99. As of the date of this report, Fangda Jianke has applied for execution and has not received
the relevant payment.
On September 10, 2018, the People's Court of Lixia District of Jinan City sentenced Shandong Zhonghong Real Estate Co. Ltd.
to the Company for payment of RMB5960429.45 within 10 days from the date of the effective date of the (2018) Lu 0102 Minchu
5367 civil judgment. In November 2019, the People's Court of Lixia District of Jinan city ruled that Zhonghong would pay the
Company the project payment of RMB24,787,204.36 yuan (including (2018) Lu 0102 Min Chu No. 5367) in the civil judgment
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Annual Report 2021 of China Fangda Group Co., Ltd.
(2019) Lu 01 Min Chu No. 2023), including RMB24,765,343.91 of creditor's right to priority payment of construction project price
and RMB21,860.45 of ordinary creditor's right. Zhonghong has been applied for bankruptcy liquidation by the Company and
is currently in liquidation. As of the date of this report, the Company has received the project payment of RMB17,351,043.05,
and the remaining amount is pending distribution.
On November 15, 2019, the Chengdu Chenghua District People’s Court ruled (2019) Chuan 0108 Min Chu No. 428 that
Sichuan Chuanta Hengyuan Industrial Co., Ltd. shall pay interest to the Company within ten days from the effective date of the
judgment (subject to RMB6,013,841.23 as the base, from May 29, 2015 to the day when the payment is paid; with RMB841,876.32
as the base, from May 28, 2015 to the day when the payment is paid. Based on 841876.32 yuan, from May 28, 2016 to the date of
payment). The Company enjoys the priority of compensation for the discounted or auctioned price of Building C of the Chuan Tower
supporting project (Film and Television Cultural Square) project within the scope of RMB 7,697,593.88. As of the date of this
report, Fangda Jianke has not received relevant funds.
In November 2018, the Company's subsidiary, Fangda Jianke, sued Fujian Huapu Real Estate Development Co., Ltd.
(hereinafter referred to as Huapu company) to the People's Court of Taijiang District, Fuzhou City for paying RMB13,810,243.67 of
project payment and RMB373,380.16 of overdue interest, totaling RMB14,183,623.83. Case No.: (2019) Min 0103 Min Chu No.
4282. In April 2020, Huapu Company filed a counterclaim application to the court, requesting Fangda Jianke Company to pay a total
of RMB12,746,000.00 for the construction period and quality. In October 2021, the court ruled that Huapu should pay the project
payment of RMB10,683,952.00 and overdue payment interest to Fangda Jianke, of which the project payment of RMB10,683,952.00
has the priority to be paid, and the judgment has come into force. As of the date of this report, Huapu has been applied for
bankruptcy liquidation, and Fangda Jianke has declared priority creditor's rights.
(3) Contingent liabilities formed by providing of guarantee to other companies’ debts and their influences on financial
situation
As of June 30, 2021, the Company provided guarantees for the following unit loans:
Name of guaranteed Guarantee Amount Term Remar
entity (RMB10,00 ks
0)
Fangda Property Guarantee and mortgage 93,000.00 2020/3/13-2030/03/12
guarantee
Fangda Property Guarantee 46,700.00 2021/03/18-2031/03/18
Kechuangyuan Guarantee 1,000.00 2021/09/30-2022/09/30
Software
Fangda Zhichuang Guarantee 5,000.00 2021/08/12-2022/08/07
Technology
Total 145,700.00
Notes:
Contingent liabilities caused by guarantees provided for other entities are all related guarantees between interested entities in the
Company.
The Company's property business provides periodic mortgage guarantee for property purchasers. The term of
the periodic guarantee lasts from the effectiveness of guarantee contracts to the completion of mortgage
registration and transfer of housing ownership certificates to banks. As of December 31, 2021, the Company assumed
the above-mentioned phased guarantee amount of RMB140,203,100.
(4) Other contingent liabilities and their influences
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Annual Report 2021 of China Fangda Group Co., Ltd.
As of December 31, 2021, the Company has no other contingencies that should be disclosed.
3. Others
As of December 31, 2021, the Company has not cancelled the letter of guarantee:
Currency Guarantee balance Deposit (RMB) Credit line used (RMB)
(original currency)
RMB (CNY) 758,318,158.29 - 758,318,158.29
Indian rupee (INR) 87,107,132.78 495,801.30 6,967,363.62
HK $(HKD) 15,349,982.00 - 12,550,145.28
United States dollars 7,455,636.33 3,962,708.91 43,572,191.64
(USD)
SGD 2,700,000.00 - 12,738,330.00
Euro (EUR) 3,921,764.01 - 28,313,959.62
Total 4,458,510.21 862,460,148.45
XIV. Post-balance-sheet events
1. Profit distribution
In RMB
Profit or dividend to be distributed 53,693,711.35
Profit or dividend approved to be distributed 53,693,711.35
2. Notes to other issues in post balance sheet period
As of March 28, 2022 (the report date approved by the board of directors), the Company has no other events after the balance sheet
date that should be disclosed.
XV. Other material events
1. Segment information
(1) Recognition basis and accounting policy for segment report
The Group divides its businesses into five reporting segments. The reporting segments are determined based
on financial information required by routine internal management. The Group’s management regularly review the
operating results of the reporting segments to determine resource distribution and evaluate their performance.
The reporting segments are:
(1) Curtain wall segment, production and sales of curtain wall materials, construction curtain wall design,
production and installation;
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Annual Report 2021 of China Fangda Group Co., Ltd.
(2) Rail transport segment: assembly and processing of metro screen doors;
(3) Real estate segment: development and operating of real estate on land of which land use right is legally
obtained by the Company; property management;
(4) New energy segment: photovoltaic power generation, photovoltaic power plant sales, photovoltaic
equipment R & D, installation, and sales, and photovoltaic power plant engineering design and installation
(5) Others
The segment report information is disclosed based on the accounting policies and measurement standards
used by the segments when reporting to the management. The policies and standards should be consistent with those
used in preparing the financial statement.
(2) Financial information
In RMB
Offset between
Item Curtain wall Rail transport Real estate New energy Others Total
segments
2,592,418,696. 3,557,724,397.
Turnover 534,310,567.88 411,193,195.27 20,077,200.97 24,943,545.65 25,218,808.93
70 54
Including:
external 2,584,704,014. 3,557,724,397.
534,310,567.88 407,329,798.11 19,285,405.44 12,094,611.13
transaction 98 54
income
Inter-segment
transaction 7,714,681.72 3,863,397.16 791,795.53 12,848,934.52 25,218,808.93
income
Including:
2,563,404,720. 3,409,535,038.
major business 534,299,120.77 300,448,029.78 20,077,200.97 8,694,034.05
63 10
turnover
2,210,997,578. 2,761,300,557.
Operating cost 387,875,376.88 161,597,097.69 8,173,207.23 460,120.74 7,802,823.60
54 48
Including:
2,197,446,382. 2,737,323,045.
major business 387,875,376.88 151,630,903.09 8,173,207.23 7,802,823.60
21 81
cost
-363,229,814.3
Operation cost 141,484,467.98 60,194,961.65 9,659,447.40 1,136,692.73 -51,043,894.97 524,661,489.16
7
Operating
239,936,650.18 86,240,229.35 239,936,650.18 10,767,301.01 75,527,319.88 380,645,799.70 271,762,350.90
profit/(loss)
4,562,330,159. 6,551,584,867. 3,141,301,937. 2,959,477,447. 12,261,338,518
Total assets 809,476,509.02 156,122,491.73
89 59 93 50 .66
Total liabilities 3,024,060,127. 509,177,240.05 3,893,858,631. 49,300,830.26 736,143,806.65 1,542,408,036. 6,670,132,600.
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45 99 34 06
(3) Others
Since more than 90% of the Group’s revenue comes from Chinese customer and 90% of the Group’s assets are in China, no detailed
regional information is needed.
XVI. Notes to Financial Statements of the Parent
1. Account receivable
(1) Account receivable disclosed by categories
In RMB
Closing balance Opening balance
Remaining book Remaining book
Bad debt provision Bad debt provision
Type value Book value
Book value
Proportio Provision value Proportio Provision
Amount Amount Amount Amount
n rate n rate
Including:
Account receivable
for which bad debt 595,366. 585,936.3 892,363.4
100.00% 9,430.38 1.58% 100.00% 6,514.35 0.73% 885,849.08
provision is made by 68 0 3
group
Including:
595,366. 585,936.3 892,363.4
Portfolio 3. Others 100.00% 9,430.38 1.58% 100.00% 6,514.35 0.73% 885,849.08
68 0 3
595,366. 585,936.3 892,363.4
Total 100.00% 9,430.38 1.58% 100.00% 6,514.35 0.73% 885,849.08
68 0 3
Provision for bad debts by combination:
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Portfolio 3. Others 595,366.68 9,430.38 1.58%
Total 595,366.68 9,430.38 --
Group recognition basis:
See 9. Financial Tools in Chapter X, V, Important Accounting Policies and Accounting Estimates for the recognition criteria and
instructions for withdrawing bad debt reserves by portfolio
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses, please
refer to the disclosure of other receivables to disclose information about bad debts:
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Annual Report 2021 of China Fangda Group Co., Ltd.
□ Applicable √ Inapplicable
Account age
In RMB
Age Remaining book value
Within 1 year (inclusive) 224,256.68
1-2 years 371,110.00
Total 595,366.68
(2) Bad debt provision made, returned or recovered in the period
Bad debt provision made in the period:
In RMB
Change in the period
Type Opening balance Written-back or Closing balance
Provision Canceled Others
recovered
Portfolio 3.
6,514.35 2,916.03 9,430.38
Others
Total 6,514.35 2,916.03 9,430.38
(3) Balance of top 5 accounts receivable at the end of the period
In RMB
Closing balance of accounts Balance of bad debt provision at
Entity Percentage (%)
receivable the end of the period
Top five summary 585,442.96 98.33% 9,357.94
Total 585,442.96 98.33% --
2. Other receivables
In RMB
Item Closing balance Opening balance
Other receivables 1,276,731,665.95 1,156,802,204.91
Total 1,276,731,665.95 1,156,802,204.91
(1) Other receivables
1) Other receivables are disclosed by nature
In RMB
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Annual Report 2021 of China Fangda Group Co., Ltd.
By nature Closing balance of book value Opening balance of book value
Deposit 150,699.54 150,699.54
Debt by Luo Huichi 12,992,291.48 12,992,291.48
Others 120,143.89 975,476.54
Accounts between related parties within
1,276,507,096.22 1,156,587,949.46
the scope of consolidation
Total 1,289,770,231.13 1,170,706,417.02
2) Method of bad debt provision
In RMB
First stage Second stage Third stage
Expected credit Expected credit loss for the Expected credit loss for the
Bad debt provision Total
losses in the next 12 entire duration (no credit entire duration (credit
months impairment) impairment has occurred)
Balance on Friday,
3,240.69 13,900,971.42 13,904,212.11
January 1, 2021
Balance on Friday,
January 1, 2021 in the —— —— —— ——
current period
Provision 156.01 156.01
Canceled in the current
865,802.94 865,802.94
period
Balance on Friday,
3,396.70 13,035,168.48 13,038,565.18
December 31, 2021
Changes in book balances with significant changes in the current period
□ Applicable √ Inapplicable
Account age
In RMB
Age Remaining book value
Within 1 year (inclusive) 764,146,855.14
1-2 years 512,517,507.97
2-3 years 0.00
Over 3 years 13,105,868.02
3-4 years 0.00
4-5 years 42,877.00
Over 5 years 13,062,991.02
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Annual Report 2021 of China Fangda Group Co., Ltd.
Total 1,289,770,231.13
3) Bad debt provision made, returned or recovered in the period
Bad debt provision made in the period:
In RMB
Change in the period
Opening
Type Written-back or Closing balance
balance Provision Canceled Others
recovered
Other receivables
and bad debt 13,904,212.11 156.01 865,802.94 13,038,565.18
provision
Total 13,904,212.11 156.01 865,802.94 13,038,565.18
4) Other receivable written off in the current period
In RMB
Item Amount
Other receivable written off 865,802.94
5) Balance of top 5 other receivables at the end of the period
In RMB
Balance of bad debt
Entity By nature Closing balance Age Percentage (%) provision at the end
of the period
Affiliated party
Fangda Property 538,579,120.00 Less than 1 year 41.76% 0.00
payment
Affiliated party 0.00
Fangda Property 390,473,301.45 1-2 years 30.27%
payment
Fangda Jiangxi 0.00
Affiliated party
Property 188,300,000.00 Less than 1 year 14.60%
payment
Development
Fangda Jiangxi 0.00
Affiliated party
Property 39,839,038.54 1-2 years 3.09%
payment
Development
Affiliated party 0.00
Fangda New Energy 46,905,949.29 Less than 1 year 3.64%
payment
Fangda Jiangxi New Affiliated party 0.00
41,097,401.50 Less than 1 year 3.19%
Material payment
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Annual Report 2021 of China Fangda Group Co., Ltd.
Affiliated party 0.00
Shihui International 30,459,793.09 1-2 years 2.36%
payment
Total -- 1,275,654,603.87 -- 98.91% 0.00
3. Long-term share equity investment
In RMB
Closing balance Opening balance
Item Remaining book Impairment Remaining book Impairment
Book value Book value
value provision value provision
Investment in
1,196,831,253.00 0.00 1,196,831,253.00 1,196,831,253.00 0.00 1,196,831,253.00
subsidiaries
Total 1,196,831,253.00 0.00 1,196,831,253.00 1,196,831,253.00 0.00 1,196,831,253.00
(1) Investment in subsidiaries
In RMB
Invested entity Opening book Change (+,-) Closing book Balance of
value Increased Decreas Impairment Others value impairment
investmen ed provision provision
t investm at the end
ent of the
period
Fangda Jianke 491,950,000.00 491,950,000.00
Fangda Jiangxi 74,496,600.00 74,496,600.00
New Material
Fangda Property 198,000,000.00 198,000,000.00
Shihui 61,653.00 61,653.00
International
Fangda New 99,000,000.00 99,000,000.00
Energy
Fangda Hongjun 98,000,000.00 98,000,000.00
Investment
Fangda 235,323,000.00 235,323,000.00
Investment
Total 1,196,831,253.0 1,196,831,253.00
0
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Annual Report 2021 of China Fangda Group Co., Ltd.
4. Operational revenue and costs
In RMB
Amount occurred in the current period Occurred in previous period
Item
Income Cost Income Cost
Other businesses 24,953,602.85 460,120.74 24,471,432.70 549,538.73
Total 24,953,602.85 460,120.74 24,471,432.70 549,538.73
Income information:
In RMB
Contract classification Segment 1 - other segments Total
Including:
Other businesses 24,953,602.85 24,953,602.85
Total 24,953,602.85 24,953,602.85
Information related to performance obligations:
The Company's operating income is derived from property rental income.
Information related to the transaction price allocated to the remaining performance obligations:
The amount of revenue corresponding to the performance obligations that have been signed, but not yet performed or not yet
performed at the end of the reporting period is 35,668,375.40 yuan, of which 24,337,334.19 yuan is expected to be recognized in
2022, and 5,892,501.23 yuan is expected to be recognized in 2023, 5,438,539.98 yuan is expected to be recognized in 2024 and
beyond.
5. Investment income
In RMB
Item Amount occurred in the current Occurred in previous period
period
Gains from long-term equity investment 33,660,000.00
measured by costs
Investment gain obtained from disposal of 135,159,744.95
long-term equity investment
Investment income from disposal of trading 334,681.44 3,057,897.96
financial assets
Total 33,994,681.44 138,217,642.91
XVII. Supplementary Materials
1. Detailed accidental gain/loss
√ Applicable □ Inapplicable
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Annual Report 2021 of China Fangda Group Co., Ltd.
In RMB
Item Amount Notes
Gain/loss of non-current assets -2,291,048.05
Government subsidies accounted into current gain/loss account, other than 12,459,417.63
those closely related to the Company’s common business, comply with the
national policy and continues to enjoy at certain fixed rate or amount.
Net gain between the beginning and merger day of subsidiaries generated by 18,912.61
merger of companies under common control
Gain/loss from change of fair value of transactional financial asset and 8,060,481.70
liabilities, and investment gains from disposal of transactional financial assets
and liabilities and sellable financial assets, other than valid period value
instruments related to the Company’s common businesses
Write-back of impairment provision of receivables for which impairment test is 31,951,043.05
performed individually
Gain/loss from change of fair value of investment property measured at fair 20,921,813.65
value in follow-up measurement
Other non-business income and expenditures other than the above -3,897,195.15
Other gain/loss items satisfying the definition of non-recurring gain/loss 0.00
account
Less: Influenced amount of income tax 12,358,051.51
Influenced amount of minority shareholders’ equity 347,626.94
Total 54,517,746.99 --
Other gain/loss items satisfying the definition of non-recurring gain/loss account:
□ Applicable √ Inapplicable
The Company has no other gain/loss items satisfying the definition of non-recurring gain/loss account
Circumstance that should be defined as recurrent profit and loss to Explanation Announcement of Information Disclosure No. 1 -
Non-recurring gain/loss
□ Applicable √ Inapplicable
2. Net income on asset ratio and earning per share
Profit of the report period Weighted average net income/asset Earnings per share
ratio Basic earnings per share Diluted Earnings per
(yuan/share) share (yuan/share)
Net profit attributable to common 4.09% 0.21 0.21
shareholders of the Company
Net profit attributable to the 3.08% 0.16 0.16
common owners of the PLC after
deducting of non-recurring
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Annual Report 2021 of China Fangda Group Co., Ltd.
gains/losses
3. Differences in accounting data under domestic and foreign accounting standards
(1) Differences in net profits and assets in financial statements disclosed according to the international and
Chinese account standards
□ Applicable √ Inapplicable
(2) Differences in net profits and assets in financial statements disclosed according to the international and
Chinese account standards
□ Applicable √ Inapplicable
(3) Differences in financial data using domestic and foreign accounting standards, the overseas institution
name should be specified if the difference in data audited by an overseas auditor is adjusted
None
China Fangda Group Co., Ltd.
Legal representative: Xiong Jianming
Wednesday, March 30, 2022
262
